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TMI Blog1977 (2) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to a concessional rate of tax. A similar claim was made during the course of the assessment proceedings for the asst. yr. 1973-74. The ITO rejected the claim of the assessee on the ground that the assessee's job was mainly printing on orders and no manufacturing of goods was done. 3. The assessee appealed to the AAC who by as common order passed for the asst. yrs. 1967-68 to 1969-70 and 1972-73 and a separate order for the asst. yr. 1973-74 on identical terms dismissed the appeals. The AAC held that the assessee was no doubt having business in printing works but still it could not be regarded as an industrial company. We was of the view that the decision of the Ajay Printery Pvt. Ltd. 58 ITR 811 (Guj) relied on by the assessee coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the AAC for the intervening year was not appealed against only because the tax effect was negligible. It was submitted that the undertaking to carry out the job in printing works for customers could not be regarded in common parlance as an industrial company and, therefore, the authorities below were right in rejecting the claim for the concessional rate of tax. 5. We have carefully considered the submissions of both the sides and we are of the opinion that the assessee is entitled to succeed. 6. The claim of the assessee has to be considered in terms of the Finance Act of the relevant assessment year. It is seen that in each assessment year, Finance Act provided that in the case of a domestic company, where the company is not in w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under the section though it is not called by any specific name. It would be interesting to compare this definition with s. 2(m) of the Factories Act, 1948, which defines a factory as any permises whereon ten or more workers are working or were working on a day of the preceding twelve months, and in any part of which a manufacturing process is being carried on which the aid of power, or is ordinarily so carried on, or whereon twenty or more workers are working and a manufacturing process is carried on without the aid of power. Manufacturing process has been defined in s. 2(k) of that Act to mean: "(i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture or production of any one of the article specified in the list in Fifth Schedule for the purpose of granting development rebate. 8. It is pertinent to note that the essential part of these definitions is the manufacture of goods. Manufacturing process as such has been defined only in the Factories Act. However, the meaning of the term 'manufacture' has now acquired the same connotation as contained in the definition in the Factories Act by reason of judicial interpretation of that word even where it occurs in other statutes. It is well settled that where a term has acquired a well organised legal importance in general law, the same term must be interpreted as having the same meaning in other Acts whatever be the common notions ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trial company. As we have seen earlier, the Expln. 2 to s. 23A did not give any particular name for the class of companies engaged in the manufacture of goods which was to be treated in a separate manner for the purpose of that section. The Gujarat High Court, therefore, had also to consider only the question whether the printing press was engaged in the manufacture of goods. The present definition of the industrial company in the Finance Act also refers only to companies engaged in the manufacture or processing of goods. Merely because they are called as industrial companies, they do not cease to be engaged in the manufacture of goods. Once we find that the assessee company is engaged in the manufacture of goods, it would definitely fall w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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