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TMI Blog1990 (12) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... any is entitled to investment allowance claimed by it in respect of its Super Dumpers, used for removal of slag and refuse from the plant site of Tata Iron Steel Co. Ltd., Jamshedpur. The departmental authorities held that the main activity of the appellant-company was to remove slag and refuse accumulated in the blast furnace pits and open hearths in TISCO factory at Jamshedpur and dump them in low lying areas specified by TISCO. They further held that there was no industrial activity carried on by the appellant-company, who were merely engaged in transport work. They also held that there was no processing, much less any manufacturing involved in picking up the slag from the TISCO's open hearths and furnaces which remained slag in the ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m.) and CIT v. Datacons (P.) Ltd. [1985] 155 ITR 66 (Kar.). 4. Shri K.L. Tilakchand, the learned departmental representative relied on the orders of the CIT (Appeals) as well as that of the assessing officer and pointed out that the appellant's main source of income was only transport receipts amounting to more than Rs. 1 crore, as could be seen from its profit and loss account for the year ended 31-12-1978. He also submitted that the facts as discussed by the departmental authorities from the materials placed by the assessee, clearly established that the appellant-company was engaged only in the business of removing and transporting slag and refuse from the factory premises of TISCO at Jamshedpur and dumping them in low lying areas speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principals, M/s. Tarapore Co., it is clear that the appellant-company is engaged only for the removal of slag and refuse from the plant site of TISCO to low lying areas of Jamshedpur town as specified by TISCO. For this purpose, they have used their vehicles, which are described as Super Dumpers by the assessee's learned counsel. The slag and refuse removed, transported and dumped by the appellant continued to remain only as slag and refuse and they had not undergone any manufacturing process at any stage namely, removal, transport or dumping, at the hands of the appellant-company. It cannot be denied that the slag and refuse are the waste products of the TISCO factory, who are engaged in the manufacture of iron and steel in their blast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f investment allowance relating to rigs and compressors used for drilling bore-wells to obtain underground water. Their Lordships accepted the assessee's contention that drilling operations resulted in the production of underground water for use on the surface of the ground and in that sense it must be held that the assessee in that case was an industrial undertaking in order to qualify for deduction of investment allowance under section 32A(2)(b)(iii) of the Act. In the present case, by removing, transporting and dumping the slag and refuse, the assessee cannot be said to have constructed land, as land is already in existence, though as low lying areas. Therefore, this decision cannot apply to the facts of the present case. 8. The decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the word "processing" has not been defined and must, therefore, be interpreted according to its plain natural meaning, and that according to the dictionary meaning of the term, where any commodity is subjected to a process or treatment with a view to its development or preparation for the market, as for example, by sorting and repacking fruits and vegetables, it would amount to processing of the commodity. It was also held that the nature and extent of processing may vary from case to case ; in one case, the processing may be slight and in another, it may be extensive ; but with each process suffered, the commodity would undergo a change. We are unable to appreciate how this decision is applicable to the facts of the present case, as admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineering Contractors for construction of roads, highways, railways, dams, bridges, canals, tunnels, reservoirs, etc. and not for construction of any land as such, which is the claim now being put forward before us by the assessee's learned counsel. On the contrary, the various construction works that are to be carried out by the appellant-company in pursuance of its objects clause have to be on land only, which already exists. Therefore, it is not correct to argue that the activity of collecting, transporting and dumping the slag and refuse of the TISCO's factory at Jamshedpur as the sub-contractor of Tarapore Co., would amount to construction of land, which can be regarded as an article, or thing, in order to enable the assessee to quali ..... X X X X Extracts X X X X X X X X Extracts X X X X
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