9911796707
|
Home
Issues:
1. Eligibility of construction of industrial undertaking for investment allowance under section 32A(2)(b)(iii) 2. Determination of business of construction as an industrial undertaking 3. Entitlement to investment allowance for constructing 'thing' under section 32A(2)(b)(iii) 4. Classification of dumpers used in civil engineering contract work as 'road transport vehicles' for investment allowance 5. Accrual of service charges as income for taxation purposes Analysis: 1. The High Court considered the eligibility of construction of an industrial undertaking for investment allowance under section 32A(2)(b)(iii). The Tribunal referred questions of law regarding the eligibility of the business of construction for investment allowance. The court relied on a Supreme Court decision and concluded in favor of the Revenue, stating that the questions were answered negatively in favor of the Revenue based on the precedent. 2. The court analyzed whether the business of construction carried out by the assessee could be classified as an industrial undertaking. The controversy revolved around the classification of the business activity. The court considered the facts and circumstances of the case and ultimately ruled in favor of the Revenue based on the previous Supreme Court decision, concluding that the business of construction was not eligible for investment allowance. 3. Regarding the entitlement to investment allowance for constructing a 'thing' under section 32A(2)(b)(iii), the court examined the nature of the business activity. The Tribunal's decision was challenged, and the court upheld the decision in favor of the Revenue based on legal precedents and the facts of the case. 4. The classification of dumpers used in civil engineering contract work as 'road transport vehicles' for investment allowance was also scrutinized. The court reviewed the Tribunal's decision and determined that the dumpers did not qualify as 'road transport vehicles' for the purpose of investment allowance, aligning with the Revenue's position. 5. The final issue pertained to the accrual of service charges as income for taxation purposes. The court deliberated on the controversy surrounding the treatment of service charges received by the assessee. Despite the assessee's arguments, the court ruled in favor of the Revenue, emphasizing that the service charges accrued to the assessee and should be included in its income, irrespective of the payer's tax treatment. The court dismissed the Tribunal's decision and answered the question in the negative, supporting the Revenue's stance.
|
