( 1 ) THE Tribunal has referred the following question of law to this court under Section 256 (1) of the Income-tax Act, 1961 :"whether, on the facts and in the circumstances of the case, the assessee can be treated as an industrial company ?"the assessment year involved is 1975-76. The assessee is engaged in business which consists wholly in processing goods, rendering them edible and then selling them in its restaurant as foodstuffs and eatables. The foodstuffs and eatables were prepared on the orders placed by customers. The dispute in this case is as to whether the company can be described as an industrial company. The Tribunal held that preparation of food articles in the case of the assessee would also amount to processing. It further held that the meaning of the word "manufacture" or "processing" should not be confined to non-edible stuff.

( 2 ) THE correctness of the conclusion of the Tribunal has been challenged by the Department. The definition of "industrial company" as given by the Finance Act, 1975, is as under : "2 (8) (c) 'industrial company', means a company which is mainly engaged in the business of generation or distribution of electricity