Sabyasachi Mukharji, J. - (1.) In this reference under Section 256(1) of the I.T. Act, 1961, the following question has been referred to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee-company was engaged in the processing of goods and was accordingly an industrial company within the meaning of Section 2(6)(d) of the Finance Act, 1968, or under Section 2(6)(c) of the Finance Act, 1969 ?"
(2.) The assessee-company has been engaged in the business of running a cold storage plant. Its income consists of charges collected from the growers of the potato for allowing them to store their products inside the assessee's plant in order to preserve these from perishing and keeping them in marketable condition. In this reference, we are concerned with the assessment years 1968-69 and 1969-70. For these two assessment years, the ITO had levied tax at 65% on the basis that the assessee was not an industrial company within the meaning of the relevant Finance Acts.
(3.) The assessee preferred appeals before the AAC. The AAC held that the assessee-company operated a cold storage plant which was used for conservation of perishable goods deposited by the customers. Such activity, according to the AAC, fell within the meaning of processing of goods. The AAC also sought support for his conclusion from the reference to Section 80J(1) and Section 80J(4) of the I.T. Act, 1961. For the aforesaid reasons, the AAC directed the ITO to treat the assessee-company as an industrial company engaged in the processing of goods and charge income-tax at the rate of 55%.;