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2006 (3) TMI 93 - KARNATAKA HIGH COURTIndustrial company – concessional rate of tax - "1. Whether, Tribunal was right in holding that the assessee should be treated as an industrial company because it was carrying on business mainly as a manufacturing concern, although a considerable amount of income arose out of rent received on leasing of its manufacturing unit to a sister concern and in that view in cancelling the order passed by the CIT under section 263 in which a direction had been given to the Assessing Officer to treat the assessee as a non-industrial company?" - Merely because, it had let out one unit while retaining the other two units where manufacturing activity is mainly being carried out, it cannot be said that the assessee is not mainly engaged in the business of manufacturing - we answer the question of law referred for our opinion in the affirmative, i.e., in favour of the assessee and against the Revenue.
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