Deb, J. - (1.) In this reference, under Section 66(2) of the Indian Income-tax Act, 1922, the question No. 1 relates to the assessment years 1959-60, 1960-61 and 1961-62, whereas question No. 2 relates to the assessment year 1962-63, and they are as follows : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the press division set up by the assessee was an 'industrial undertaking' within the meaning of Section 15C of the Indian Income-tax Act, 1922, and, accordingly, the assessee was entitled to exemption in respect of the profits thereof under the said provision ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the press division set up by the assessee was an 'industrial undertaking' within the meaning of Section 84 of the Income-tax Act, 1961, and, accordingly, the assessee was entitled to exemption in respect of the profits thereof under the said provision ?"
(2.) The assessee is a manufacturer of motor cars. In the accounting year, relevant to the assessment year 1957-58, the assessee established a new industrial unit known as "press division" in a new house for the manufacture of "body panels" for the Hindusthan Motor Cars by purchasing new plant and machinery. The assessee has also kept separate books of account for this new unit.
(3.) The Income-tax Officer has disallowed the assessee's claim for tax relief for this new unit under Section 15C(1) of the Indian Income-tax Act, 1922, and Section 84 of the Income-tax Act, 1961, respectively, for the relevant assessment years on the ground that the "body panels" manufactured by the assessee were not sold in the market, but were used as component parts of the motor cars, but the Appellate Assistant Commissioner has allowed the appeals filed by the assessee, and the Appellate Tribunal has dismissed the appeals filed by the department.;