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1971 (8) TMI 93 - SC - Indian LawsWhether on the admitted and undisputed facts any tax could be levied under section 121 of the Adhiniyam on the company whose factory for manufacturing sugar was situate outside the jurisdiction of the Zila Parishad? Held that:- The High Court was of the view (which appears to be unexceptionable) that the word "operation" covered the purchase of wool as raw material for use in manufacturing carpets and that such a purchase was an operation carried out in the course of its business by a person or firm which manufactured the carpets. We are unable to see how any assistance can be derived from the above case for the purpose of deciding the meaning of the word "carrying on business" used in section 121(a) of the Adhiniyam. The contention of the Zila Parishad, if accepted, would lead to the astounding and extraordinary result that if a manufacturing concern continuously acquires raw material not only from different parts of India but also from other parts of the world it could be said that it was carrying on business in all those places from where the raw materials were acquired or purchased. We are unable to give any such wide connotation to the words "carrying on business", employed in section 121(a) of the Adhiniyam. Appeal dismissed.
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