| Case ID |
429368c3-b360-4838-9ecf-375af33ac1c2 |
| Body |
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| Case Number |
IT REFERENCE No. 72 OF 1976 |
| Decision Date |
Jun 04, 1980 |
| Hearing Date |
|
| Decision |
The Tribunal was correct in holding that the assessee was engaged in the act of processing of goods and was, accordingly, an industrial company within the meaning of section 2(6)(d) of the Finance Act, 1968 and section 2(6)(c) of the Finance Act, 1969. The High Court upheld the findings of the Tribunal, emphasizing that cold storage qualifies as processing of goods as it prevents natural decay, thus aligning with the definitions provided in the relevant Finance Acts. The judgment reflects a clear interpretation of what constitutes industrial activity, distinguishing between mere storage and processing that adds value by preserving the original state of perishable goods. The decision also highlights the importance of legislative definitions and the context in which terms like 'processing' are used, establishing a precedent for similar cases. |
| Summary |
This case revolves around the definition of an 'industrial company' as per the Finance Acts of 1968 and 1969, specifically focusing on the activities of Radha Nagar Cold Storage (P.) Ltd. The court had to determine if the operation of a cold storage facility could be classified as processing of goods, which would entitle the company to be recognized as an industrial entity. The Tribunal found that the company's activities prevented the natural decay of potatoes stored in their facility, thereby constituting processing under the applicable laws. The decision reinforced the interpretation of industrial activities, clarifying that cold storage does not merely involve storage but involves active preservation, fitting the legal definition of processing. This case serves as a significant reference for future determinations of what activities qualify as industrial processing, particularly in the context of food preservation and cold storage operations. |
| Court |
Calcutta High Court
|
| Entities Involved |
Radha Nagar Cold Storage (P.) Ltd.
|
| Judges |
Sabyasachi Mukharji,
Sudhindra Mohan Guha
|
| Lawyers |
Ajit Sengupta,
Sunil Mukherjee,
Dr. D. Pal,
A.K. Roy Chowdhury
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Radha Nagar Cold Storage (P.) Ltd.
|
| Citations |
1980 SLD 1273,
(1980) 126 ITR 66
|
| Other Citations |
Addl. CIT v. Farrukhabad Cold Storage (P.) Ltd. [1977] 107 ITR 816 (All.),
CIT v. Casino (P.) Ltd. [1973] 91 ITR 289 (Ker.),
Addl. CIT v. Chillies Export House Ltd. [1978] 115 ITR 73 (Mad.),
Khuda Bux v. Manager, Caledonian Press AIR 1954 Cal 484,
Kilmarnock Equitable Co-operative Society Ltd. v. IRC [1966] 42 TC 675,
Om Prakash Gupta v. Commr. of Commercial Taxes [1965] 16 STC 935 (Cal.)
|
| Laws Involved |
Finance Act, 1968,
Finance Act, 1969
|
| Sections |
2(6)(d),
2(6)(c)
|