2003 (4) TMI 91 - HC - Income Tax

Small Scale Industries - (i) Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the structural steel and tubular structure fall within the definition of plant and machinery ? - (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to depreciation at 30 per cent. on the structural steel and tubular structure? - It is not necessary that the manufacturer itself would sell the manufactured goods. The manufacturer may utilise it for construction of dams or for other purposes. Once a person manufactures any goods involving use of plant and machinery, capital and labour, he will be treated as a manufacturer and then it will be a case covered under section 43 of the Income-tax Act. - we answer the questions referred to above in favour of the assessee and against the Department.

Summary

The High Court of Allahabad ruled in favor of the assessee, holding that structural steel and tubular structure are considered 'plant and machinery' for depreciation purposes. The assessee, engaged in manufacturing technical products, was deemed a manufacturer under the Income-tax Act. The Tribunal's decision was upheld, and the reference was disposed of in favor of the assessee.