COMMISSIONER OF INCOME TAX Vs. DATACONS PRIVATE LIMITED

JUDGEMENT

(1.) THIS is a reference under s. 256(1) of the I.T. Act, 1961, and the question of law referred is :

(2.) THE assessee is a company. It claimed that it was an industrial company as defined under s. 2(7)(c) of the Finance (No. 2) Act, 1977. If it was an industrial company, it would be entitled to be taxed at a concessional rate. THE ITO rejected that claim and assessed the income by applying normal rate of taxation, but in appeal before the AAC, the assessee succeeded.

(3.) INDUSTRIAL company was defined during the relevant assessment year under s. 2(7)(c) of the Finance (No.) 2) Act, 1977, to mean :