2003 (11) TMI 9 - HC - Income Tax

Investment allowance - Whether the Tribunal was right in law in holding that the machinery deployed by the assessee in the seed processing unit and the marine products division are entitled to investment allowance under section 32A - held that the processing of shrimps does not amount to manufacture and, therefore, the assessee is not entitled to investment allowance under section 32A - held that the processing of seeds amounts to production. The assessee is, therefore, entitled to claim investment allowance on its seed processing unit. - The question referred to us is, therefore, answered partly, in favour of the Revenue, with regard to the investment allowance on marine products, such investment allowance is not allowable, and partly in favour of the assessee, investment allowance for seed processing unit being allowable.

Summary

The High Court of Madras ruled on the eligibility of investment allowance for a seed processing unit and marine products division for the assessment year 1982-83. The court held that investment allowance is not allowed for marine products but is allowable for the seed processing unit based on previous decisions.