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TMI Blog1987 (11) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... roducing any new article or thing in the course of fabrication process. The material for the purpose of fabrication has been supplied by the principals. The assessee only renders services for fabricating the required articles. Thus, he held that the assessee is not entitled for investment allowance for both these years. On appeal, the Commissioner of Income-tax (Appeals) upheld the disallowance made by the Income-tax Officer. 3. The learned counsel for the assessee strongly urged that the assessee manufactures cranes, tanks and various other such articles or things. The assessee has large machinery for the purpose of such manufacture of separate units. This is not a case of repairs carried out but a unit like tanks, cranes, etc., are manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity. On reference, the Delhi High Court reversing the Tribunal's decision held that the making of clothes or garments to the order of the customers will also be manufacturing or processing of goods. In CIT v. Ajay Printer (P.) Ltd. [1965] 58 ITR 811 the Gujarat High Court held that the business of printing balance-sheets, profit and loss accounts, dividend warrants, etc., was that of 'manufacture of goods'. In Addl. CIT v. Kalsi Tyre (P.) Ltd. [1981] 131 ITR 636, the Delhi High Court held that the activity of retreading types amounts to processing of goods. In Addl. CIT v. A. Mukherjee Co. (P.) Ltd. [1978] 113 ITR 718 (Cal.), it was held that the publication of books by getting them printed or bound by another, was a manufacturing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction of the dam. The Tribunal held that the assessee was entitled to investment allowance. In Durandel Foods (P.) Ltd. v. ITO [1983] 6 ITD 207 (Hyd.) the assessee was engaged in packing in bottles malted milk food 'Horlick'. The assessee used its own machinery and labour for such packing. The Tribunal held that the assessee did manufacturing or at any rate produce a commercially different article in respect of bottled Horlicks and it was entitled to investment allowance. 5. In our view the ratio laid down the above cases would squarely apply to the instant case. The order of the Tribunal in ITO v. Ahura Shipping Engg. Co. (P.) Ltd. [1984] 8 ITD 435 (Bom.) relied on by the learned.departmental representative is distinguishable as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1983-84 is with regard to the credit of Rs. 10,000 in the name of Shri v. Rambabu. The assessee filed confirmatory letter before the Commissioner of Income-tax (Appeals). But he confirmed the addition of Rs. 10,000. The learned counsel submitted that the Commissioner (Appeals) should have examined the creditor if he was not accepting the confirmatory letter. The learned departmental representative justified the addition. In our view the Commissioner (Appeals) should have summoned the creditor and examined him since the confirmatory letter was filed. Since that has not been done, we remit this item to the file of the Commissioner (Appeals) for examining the creditor and deciding the genuineness of the credit. 10. In the result, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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