1981 (4) TMI 151 - AT - Income Tax

Summary

The appeal was against the CIT's withdrawal of investment allowance under s. 32A. The assessee, a ginning factory, claimed investment allowance for machinery. The CIT withdrew the allowance, stating ginning was not manufacturing. The ITAT ruled in favor of the assessee, stating ginning transforms raw cotton into a distinct product, qualifying as manufacturing. The appeal was allowed.