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Issues Involved:
The judgment addresses the issue of whether hydraulically operated tippers used by a general works contractor qualify as road transport vehicles for the purpose of claiming investment allowance under section 32A of the Income-tax Act. Details of the Judgment: The High Court of Andhra Pradesh considered a case referred by the Commissioner of Income-tax regarding the eligibility of a firm engaged in civil contract works to claim investment allowance on the cost of tippers purchased for their business operations. The Income-tax Officer and the Appellate Assistant Commissioner had denied the deduction under section 32A, contending that tippers were road transport vehicles and thus excluded from the allowance. However, the Tribunal disagreed, interpreting the term "road transport vehicles" in a broader sense to include vehicles used for transporting goods and persons. The Tribunal's decision was based on a previous ruling and the Income-tax Rules. The High Court concurred with the Tribunal, emphasizing that the ordinary meaning of "road transport vehicles" should apply in the absence of a specific definition in the Income-tax Act. It was noted that tippers are not commonly referred to as transport vehicles and should not be excluded from investment allowance if they are essential tools for the business operations. Therefore, the Court ruled in favor of the assessee, allowing the investment allowance on the tippers and disposing of the reference case without costs.
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