SENGUPTA, J. - (1.) IN this reference under S. 256(2) of the IT Act, 1961 ('the Act'), the following question of law has been referred to this Court for the asst. yr. 1979-80: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the CIT's order under S. 263 of the IT Act, 1961?"
(2.) SHORTLY stated, the facts are that for the asst. yr. 1979-80 the original assessment was completed on a total income of Rs. 40,37,351 as per the ITO's order under S. 143(3) of the Act dt. 30th May, 1981 on which income-tax was charged at a rate applicable to a non-industrial company. The assessee claimed before the CIT (A) that it was entitled to be taxed at a concessional rate, being an industrial company. The CIT (A) by his order dt. 24th Aug., 1981 rejected the assessee's contention and held that various processes undertaken by the assessee in the blending of tea did not amount to manufacture or processing of a new article so as to entitle the assessee to the benefit of being taxed at a concessional rate as an industrial undertaking. The assessee did not take up the matter further in appeal before the Tribunal. Subsequently, the assessment was revised in pursuance of the CIT's order under S. 264 on 31st Dec., 1981.
(3.) BY another order dt. 6th March, 1982, the ITO rectified the assessment under S. 154 determining the total income of the assessee at Rs. 33,08,910 as against the total income determined in the original assessment at Rs.40,37,351. The ITO in the said order calculated the tax payable by the assessee at 65 per cent income-tax and 5 per cent surcharge.;