9911796707
TMI Blog2000 (11) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... of any new machinery or plant installed for the purpose of business of manufacture or production of any article or thing. 3. The learned Departmental Representative submitted that the assessee's activity is not manufacturing any new thing or article. He has pointed out the provisions of s. 32A(2)(b) r/w Expln. II and submitted that as per the provisions of s. 32A, a new article or thing must come into existence with different qualities other than raw materials used in manufacturing and having different qualities other than a article or thing which was in existence. He has relied on the decisions of the Supreme Court in the cases of CIT vs. N.C. Budharaja & Co. & Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC) and CIT vs. Shaan Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollution in air and in other elements. Mr. Doraisamy argued that in the modern age and in a developing activity of information technology, analysing the water, air, soil samples for ascertaining the level of impurities, pollution in air and in other elements though prepare a report only but amounts to manufacturing a new article or thing and hence the investment allowance has to be allowed. He relied on CBDT Notification dt. 27th Sept., 2000, wherein CBDT notified several sectors which fall within the ambit of 'IT-enabled services' and would enjoy tax cover under provisions of s. 10A and 10B of the IT Act. In these sections the word 'manufacturing' is used. These sectors include back office operations, call centres, content development/anim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 and 11. He has relied on the decision of the M.P. High Court in CIT vs. Oswal Data Processors (1997) 223 ITR 735 (MP) at p. 737 wherein it has held that "in view of the sophisticated and specialised type of operations involved in software servicing and data processing, it has been decided to recognise this, as an industrial activity." According to him, data processing with the help of computers as in the assessee's case is an industrial undertaking and that computer machines do not constitute office appliances, and are entitled to investment allowance. He also relied on the judgment of the M.P. in CIT vs. Steel Tubes of India Ltd. No. (1) (1997) 228 ITR 38 (MP) and Calcutta in CIT vs. Shaw Wallace & Co. Ltd. (1993) 112 CTR (Cal) 335 : (19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruments Act, 1881-inserted in the said Act, by the Amendment Act of 1988 w.e.f. 1st April, 1989, by observing that "The legislature must be presumed to have been aware of the modern devices and equipment already in vogue and also in store for future. Technological advancements like facsimile, internet, e-mail, etc. were on swift progress, even before the Bill for the Amendment Act introducing s. 138 was discussed by Parliament. Therefore, the notice transmitted by "fax", would be sufficient compliance with the legal requirement." 5. We have heard the learned Departmental Representative, Sri G.S.D. Babu and the learned representative for the assessee, Sri T. Doraisamy. Their arguments are taken into consideration. We have perused the releva ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
