TMI Blog1991 (3) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... cision under section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, Bombay. This question reads as under : "Whether, on the facts and in the circumstances of the case, the activity of the assessee of producing cinematograph films is an 'industrial undertaking' for the purpose of deduction under section 80J of the Income-tax Act, 1961, for the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 24, dated July 23, 1969, issued by the Central Board of Direct Taxes. By the said Board's circular, it was notified by the Board that the production of cinematograph films amounted to manufacture or processing of goods within the meaning of section 104 (4) (a) of the Income-tax Act, 1961. It was also stated in the said circular that, in the opinion of the Board, a cinematograph film suitable fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the said order, the Department filed a second appeal before the Income-tax Appellate Tribunal. The Tribunal examined the matter in further depth. The expression "industrial undertaking" has not been defined in the Income-tax Act, 1961. The Tribunal applied the normal commercial meaning of the words "industrial undertaking" in support of its view that the aforesaid activity amounted to "industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny greater detail. Dr. Balasubramaniam, learned counsel for the Revenue, has fairly admitted that the above-referred circular is still operative and is being given effect to for the purpose of applying section 104(4)(a) of the Income-tax Act, 1961. Section 104 (4) (a) reads as under : "104. (4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw and other allied laws also. Whether the assessee satisfies all other conditions of the said section or not will have to be examined by the authorities below to whom the directions have already been issued by the Income-tax Tribunal. Accordingly, we answer the question referred to us in the affirmative and in favour of the assessee. There shall be no order as to costs. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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