1984 (1) TMI 21 - HC - Income Tax

Summary

Issues:
1. Availability of investment allowance to the assessee.
2. Classification of the assessee as a manufacturer of iron and steel (metal) for claiming investment allowance.

Analysis:
The assessee, a company converting tin sheets into containers, claimed investment allowance for machinery installed before February 2, 1977. The assessing authority rejected the claim stating the assessee is not a manufacturer of iron and steel but only uses them in the process of making tin containers. The Commissioner of Income-tax (Appeals) and the Tribunal upheld this decision. The Tribunal found the assessee to be a manufacturer of metal containers, not iron and steel. The assessee sought a reference to the High Court, contending it manufactures iron and steel (metal) as per various certificates and documents provided. However, the High Court noted that the articles produced by the assessee were metal containers made from tin plates, not iron and steel. As per the Ninth Schedule of the Income Tax Act, investment allowance can be claimed for manufacturing specific items, including iron and steel (metal). Since the assessee was not manufacturing iron and steel, the claim for investment allowance was rightly denied. The court also cited a previous decision to support this conclusion. Consequently, the petition was dismissed, and no costs were awarded.