TMI Blog1994 (8) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 5(1)(xxxii) of the Wealth-tax Act, 1957, in regard to her capital investment in the said firm ?" The assessee is an individual. She is a partner in the firm, M.D. Jewellers, Jaipur. The assessee claimed exemption under section 5(1)(xxxii) of the Wealth-tax Act, 1957, on the plea that M.D. Jewellers is an industrial undertaking. The Wealth-tax Officer rejected the contention of the assessee. According to the Wealth-tax Officer, the character of the stone is not changed and there was no manufacturing or processing of the stones in the business carried on by the assessee. The assessee appealed to the Appellate Assistant Commissioner. In the appeal, it was contended that the law does not require that the "industrial underta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in the absence of a specific finding that the manufacturing or processing of goods is done either wholly or even in some part by the firm of which the assessee is a partner. In support of his contention, he placed reliance on a Division Bench judgment of this court : CWT v. Vimal Chand Daga (HUF) [1988] 172 ITR 264. Before we proceed to determine as to whether the Tribunal had recorded the requisite finding to bring the case within the ambit of section 5(1)(xxxii) or not, we think it proper to refer to the findings of the Tribunal while reversing the finding of the Appellate Assistant Commissioner as under : " We have heard the parties and perused the records. The facts of the case are not disputed. The assessee is one of the partne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocal market and then converted them into "tawdda", "potta" and cut emeralds by processing. It was stated that in this process, rough emeralds are sorted out, converted into "ghats" and finally shaped, polished and coloured and that manufacturing is got done through skilled labourers who are paid on the basis of work done. The assessee claimed that the firms of which he was a partner manufacture and process emerald and this activity makes them "industrial undertakings" entitled to the benefit of section 5(1)(xxxii) read with the Explanation to section 5(1)(xxxii) of the Act. The aforesaid facts were found proved by the Tribunal and on that basis the Tribunal granted the benefit of section 5(1)(xxxii) of the Act read with the Explanation. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the employer-employee relationship exists between them as claimed before us on behalf of the assessee. We may add that the meaning of an "industry" defined in section 2(j) of the Industrial Disputes Act as indicated in Bangalore Water Supply and Sewerage Board v. A. Rajappa, AIR 1978 SC 548, may also be borne in mind in this context. The triple tests indicated the existence which show prima facie that there is an "industry" in that enterprise would also be helpful for this purpose. The matter has not been decided by the Tribunal or any of the authorities below it in this perspective for the obvious reason that the case was not put up by the parties in the correct perspective. Reference was made before us to a book Indian Gemmology by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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