TMI Blog1981 (1) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the meaning of section 84 of the Income tax Act, 1961, and as such the assessee was entitled to relief under section 84 of the said Act for the assessment year 1965-66 in respect of profits derived from such business ?" The assessment year involved is 1965-66 and the previous year ended on March 31, 1965. The assessee is a private limited company. During the year the assessee-company carried on the business of manufacturing and sale of metals and also in galvanizing work for outsiders. The assessee claimed exemption of tax under s. 84 in respect of business of manufacturing and sale of metals and its galvanizing work. The ITO held that the assessee was not entitled to relief under s. 84 is respect of trading in raw materials from whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: "84. (1) Save as otherwise hereinafter provided, income-tax shall not be payable by an assessee on so much of the profits or gains derived from any industrial undertaking or business of a hotel or from any ship, to which this section applies, as does not exceed six per cent. per annum on the capital employed in such undertaking or business or ship, computed in the prescribed manner." Sub-section (2) of the, said section applies to any industrial undertaking which fulfils all the following conditions, namely: "(i) It is not formed by the splitting up, or the reconstruction, of business already in existence; (ii) it is not formed by the transfer to a new business of a building, machinery or plant previously used for any pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work of galvanizing. The dictionary meanings of galvanization as it appears from Webster's Third New International Dictionary, Vol. 1, page 932, are as follows: "Galvanization-the act or process of galvanising: specify: the application of an electric current to the human body for medical purposes : Galvanize-1 a: to subject to the action of an electric current; b : to arouse, stimulate, or excite as if by the application of an electric current; 2: to coat (iron or steel) with zinc-compare ELECTRO GALVANIZE Galvanised iron-iron or steel coated with zinc to protect it from rust," The expressions, "manufacture " or produce " are wen-known expressions in fiscal legislation. The expression manufacture " is an expression very often c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consider this question and observed that the word " manufacture " had a wider and also a narrower connotation. In the wider sense, it simply meant making or fabricating or bringing into existence an article or product either by physical labour or by power and the word " manufacture " in the ordinary parlance would mean a person who made, fabricated or brought into existence a product or an article by physical labour or power. The other shade of meaning which, according to the Division Bench of the Bombay High Court, was the narrower meaning, implied transforming raw materials into a commercial commodity or a finished product which had an entity by itself but it did not necessarily mean that the materials with which the commodity was so ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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