Case: Commissioner of Income Tax Vs. Shilpi Advertising Limited

The Tribunal and the High Court declined the application of the Revenue for reference of the following question :"Whether, the Tribunal is right in law and on facts in holding that the assessee is an industrial company entitled for concessional rate of tax?" 2. The basis of the refusal was that this was not a referable question of law. 3. We have perused the relevant portion of the order of the Tribunal where the activities of the assessee are listed, thus :"(i) Production of design and art works which serve as the basic material for publication of advertisements in newspapers, periodicals, technical journals, souvenirs, etc.(ii) Preparation of print material like calendars, posters, leaflets, booklets, etc., including the blocks thereof.(iii) Production of software for audio visuals, advertising films, etc., for publicity through cinema theatres and other shows.(iv) Commercial production of spots, jingles for publicity through radio and similar spots and advertising films for telecast on T. V.(v) Preparation of designs for fabrication and erection of hoardings for outdoor publicity.(vi) Production of publicity texts including for the press, direct mail product literature etc." * Based thereon, the Tribunal held that these activities amounted to processing and that, therefore, the company was eligible to be treated as an industrial company.

Decision reasoning: 0[ds]3. We have perused the relevant portion of the order of the Tribunal where the activities of the assessee are listed, thus :"(i) Production of design and art works which serve as the basic material for publication of advertisements in newspapers, periodicals, technical journals, souvenirs, etc.(ii) Preparation of print material like calendars, posters, leaflets, booklets, etc., including the blocks thereof.(iii) Production of software for audio visuals, advertising films, etc., for publicity through cinema theatres and other shows.(iv) Commercial production of spots, jingles for publicity through radio and similar spots and advertising films for telecast on T. V.(v) Preparation of designs for fabrication and erection of hoardings for outdoor publicity.(vi) Production of publicity texts including for the press, direct mail product literature etc."thereon, the Tribunal held that these activities amounted to processing and that, therefore, the company was eligible to be treated as an industrial company.