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1. This is a revision by the assessee and pertains to the year 1970-71.

2. The assessee is a private limited company. It has a factory at Ghaziabad and head office at Delhi. The head office entered into a contract of sale for the supply of flowmore size 10 X 10" acquaseal, heavy duty, single stage, horizontal centrifugal pump specially designed for ash slurring pumping set having a rated capacity of 600 cubic metre per hour at a total dynamic head of 15 meters of water-head running at approximately 735 RPM speed complete with multi V-belt, variable sheave drive and suitable Siemens make 100 H.P., 960 RPM 415 volts, 3 ph. 5 cycles, A.C. motor having class 'E' insulation in TEFC enclosure. The contract provided that the motors should be provided with space heaters for 230 volts, single phase, 50 cycles, A.C. supply. It was laid down that the motors shall be suitable for operation at an ambient temperature of 50°C. Only the pumps were manufactured at the factory at Ghaziabad. They were moved to Delhi and were to become part of the machinery supplied by the head office to M/s. Turner Hoare and Company Limited. The contract was entered into in Delhi and the pumps were made in Delhi.