COMMISSIONER OF INCOME-TAX Vs. LAXMI PRINTS

JUDGEMENT

(1.) BY this reference under section 256(1) of the Income Tax Act, 1961 at the instance of the revenue, the Income Tax Appellate Tribunal has referred the following question of law to this Court for opinion :

(2.) THE material facts relevant for deciding the controversy in this case are as follows :

(3.) NONE appears for the assessee. The learned counsel for the revenue submits that the controversy in the above question is concluded by the decision of this Court in Commissioner of Income Tax v. Fashion Prints Limited reported in (1996) 217 I.T.R. 456. We have perused the said decision. The controversy in that case was that the activity of the assessee in dyeing, printing and processing grey cloth produced by others amounted to manufacture or production of textiles as specified under item No.21 of the list in Ninth Schedule to the Income Tax Act, 1961 so as to entitle it to additional depreciation under Section 32(1)(vi) of the Act. This Court, after careful consideration of number of authorities and for the reasons set out therein, held that the assessee by applying the process of printing and dyeing on the grey cloth admittedly manufactured by others did not carried on business of manufacture or production within the meaning of Section 32(1)(vi) of the Act. The ratio of the above decision clearly applies to the present case, and following the same, we answer the question in the negative and in favour of the revenue.