2002 (8) TMI 83 - HC - Income Tax

Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in law in holding that the assessee is entitled to investment allowance under section 32A in respect of dumpers used in the business of mining operation on contract? - it is clear that the dumpers in this case which were being used for mining purposes and not merely for carrying goods on the roads were not required to be treated as motor transport vehicles. The investment in the dumpers having been made by the assessee and the dumpers having been used for the purpose of mining investment allowance was clearly allowable and had rightly been allowed by the Commissioner and the Tribunal. - We therefore answer the question referred to us in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled in favor of the assessee, allowing investment allowance for dumpers used in mining operations on contract. The Commissioner's decision was upheld based on a circular from the Central Board of Direct Taxes regarding the use of dumpers for specific purposes. The court determined that the dumpers, used for mining and not general transportation, qualified for investment allowance.