K.S.VISWANATHAN, P.S.DHILLON
Cast Stones (P. ) Ltd. – Appellant
Versus
Income-tax Officer – Respondent
Advocates Appeared:
V. P. Mehta,D. R. Chawla
ORDER
P. S. Dhillon, Judicial Member - The assessee has made this appeal against the order dated 11th March,1981 of the Commissioner (Appeals) VI, Bombay, who dismissed the appeal against the order dated 22nd Feb,1979 of the Income-tax Officer, Com. Cir V(5) Bombay.
2. The relevant facts in brief leading to this appeal are that the assessee is a company. The previous year for the assessment year 1978-79 is ended on 31st December, 1977. The assessee-company was incorporated on 22nd Feb, 1970 and the accounts were closed for the first time on 31st December, 1970. The company filed the return of income for first time for the assessment year 1978-79 and the explanation offered was that there was no business activity. The assessee claimed that for the assessment year 1978-79, the business of the assessee was that of manufacture of precast concrete housing components. Hence the company should be treated as industrial company for the following reasons:
" The novel idea of manufacturing precast concrete wall-blocks and floor-blocks on site is introduced for the first time in the market. This is beneficial to both the customer and manufacturer of such blocks. It saves time as also transport a
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