TMI Blog1992 (8) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... een referred by the Appellate Tribunal to this court under section 27(1) of the Wealth-tax Act, 1957, for its opinion : " 1. Whether the Income-tax Appellate Tribunal was correct in law in holding that fabrication of leather boots be regarded as manufacturing or processing of goods within the meaning of section 5(1)(xxxii) of the Wealth-tax Act, 1957 ? 2. In case the answer to question No. 1 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The claim of the assessees was opposed by the Revenue on the ground that the aforesaid firm is not engaged in the manufacture of leather boots itself but gets the boots manufactured on job basis from contract labourers to whom the aforesaid firm supplies the raw material and then makes payment of labour charges with reference to the pieces manufactured by them. The Tribunal accepted the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no need to dwell upon this issue any longer as this question came up before this court in CWT v. Radhey Mohan Narain [1982] 135 ITR 372 which, adverting to the Explanation appended to clause (xxxi) of sub-section (1) of section 5, held that the activity of converting plain white cloth into printed and dyed bedspreads, scarves and garments, etc., entitled the concern to be treated as an industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we hold that the firm in which the assessees are partners will be characterised as an industrial undertaking within the meaning of section 5(1)(xxxii) of the Act despite the fact that it got the leather boots manufactured on job basis from others to whom the raw material was supplied and labour charges were paid on contract basis. We, therefore, answer both the questions in the affirmative, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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