1984 (6) TMI 111

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..... ge involved manufacturing. However, the ITO held that the cold storage only involved processing and not manufacture or production of an article or thing. Therefore, the claim of investment allowance was disallowed. Since the industrial undertaking, in question, is situated in a backward district, deduction under section 80HH of the Act was also claimed by the assessee. The assessee did not file the prescribed audit report in Form No. 10C, as required under section 80HH(5), read with rule 18B of the Income-tax Rules, 1962 (' the Rules ') and, therefore, the claim was rejected by the ITO. The first two grounds of appeal relate to these claims. In appeal, the learned Commissioner (Appeals) upheld the rejection of the claims. 3. In further ap .....

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..... that none of the decisions, referred to on behalf of the assessee, was of assistance to it. 4. We have considered the rival submissions as also the decisions, referred to above. Section 32 of the Act, which deals with depreciation, uses the expression ' plant '. Section 43(3) of the Act defines ' plant '. It is with reference to the said definition that it was held by the Hon'ble Allahabad High Court in the case of Kanodia Cold Storage that the freezing chamber with insulated walls in a cold storage amounted to a ' plant ' which was entitled to depreciation at the rate of 15 per cent on its written down value. It does not help the assessee as this is not the point in issue before us. Section 2(7)(d) of the Finance Act, 1966 and the Financ .....

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..... factory under the Factories Act, the Hon'ble Punjab and Haryana High Court was only considering the meaning of ' plant ' under section 43(3) with reference to thermocole insulation. It was held that as a factory building, the building of cold storage was entitled to depreciation at the rate of 15 per cent. That is how the definition of ' manufacturing process ' under the Factories Act, as amended by the Factories (Amendment) Act, 1976 does not assist the assessee on the facts of the present case. We have to see whether, on the wordings of sections 32A and 80HH, the assessee was entitled to investment allowance and deduction. Here, it will be noticed that section 32A uses the expression ' business of manufacture or production of any article .....

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