HARSCO CORPORATION OPERATING IN INDIA IN THE NAME OF HECKETT ENGINEERING CO INDIA BRANCH DIVISION OF HARSCO CORPORATION Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) Under Section 271(1) of the Wealth Tax Act (Central Act 27 of 1967)--hereinafter called the Act--the Appellant Income-tax Tribunal, Patna Bench, has referred to this Court the following question of law:

(2.) The argument put forward on behalf of the assessee by Mr. Rajeshwari Prasad, its learned counsel, is that the assessee is a company within the meaning of Sub-clause (ii) of Clause (h) of Section 2 of the Act and hence, in terms, it is entitled to the exemption provided in Clause (d) of Section 45, inasmuch as the company established its place of business in India in the year 1956 with the object of carrying on an industrial undertaking in India or, in any view of the matter. It was a company established with the object of carrying on an industrial undertaking in India at the time of its incorporation in the United States qn the 28th of February 1956 Counsel submitted that both the periods aforesaid were within the exemption limit of five successive assessment years as provided in the proviso to Clause (d) of Section 45 of the Act. The learned Standing Counsel for the department combated this argument and submitted that the fact of establishment of a place of business by the assessee company in India for carrying on an industrial undertaking is not one which would attract the provisions of exemption and the company was not established, that is to say, incorporated in the United States, with the object of carrying on an indus trial undertaking in India within the meaning of exemption clause.

(3.) Section 2(h) says :