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TMI Blog1992 (10) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as construction of dam is entitled to additional depreciation on trucks, dumpers, tippers and road roller and also investment allowance thereon. 3. The assessee is a registered firm and has executed contracts by constructing dams, canals in Jayakwadi project on Godavari river. It follows mercantile method of accounting and financial year as the previous year. For the asst. yr. 1983-84, it claimed investment allowance and additional depreciation on trucks and dumpers in the revised return filed. Similar claim was made by the assessee on trucks and dumpers in the asst. yr. 1984-85. In the asst. yr. 1982-83, original assessment order made on 30th March, 1985 was set aside by the CIT, Nashik under s. 263 on 12th Aug., 1986 with direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same analogy, he urged that the assessee is not entitled to investment allowance on the trucks and dumpers newly acquired by the assessee and used for construction work for these years under consideration. However, he conceded and did not press the ground relating to grant of investment allowance on road rollers which is relevant for the asst. yr. 1982-83, obviously because it is not a transport vehicle but machinery only. He further referred to the judgment of the Madras High Court in the case of CIT vs. Popular Borewell Service Ors. (1991) 94 CTR (Mad) 240 : (1992) 194 ITR 12 (Mad). He pointed out that only the rigs and compressors are used for drilling bore-wells and though mounted on the lorry could not be regarded as part of machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see relied on the judgment of the Karnataka High Court in the case of Shankar Construction Co. vs. CIT (1991) 94 CTR (Kar) 155 : (1991) 189 ITR 463 (Kar) for the proposition that the business of construction of dams and channels was an industrial undertaking entitled to investment allowance. Reliance was also placed on the judgment of the Kerala High Court in the case of CIT vs. Bhageeratha Engg. Ltd. (1991) 99 CTR (Ker) 204 : (1992) 193 ITR 674 (Ker) wherein it has been held that construction company acquiring plant and machinery and manufacturing and processing various materials such as reinforced concrete slabs is an industrial undertaking entitled to investment allowance. Reliance was also placed on the judgment of the Karnataka High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that dumpers were used for efficient system of transport and Tribunal has also given a finding in this regard. The learned counsel for the assessee also filed a copy of the order of the Tribunal, Pune Bench, in the case of Mulay Brothers, vs. ITO ITA No. 78/Pune/86 and 100 101/Pune/86 and 439/Pune/87 dt. 17th Aug., 1987 wherein the Tribunal has held that the Ashok Leyland Dumpers were eligible for investment allowance. He referred to page 3 of the paper compilation containing Circular as to whether fork-lift-trucks are road transport vehicles and whether development rebate is admissible or not. The Board reconsidered its earlier Instruction No. 617 dt. 13th Sept., 1973 and in Instruction No. 1011 dt. 24th Sept., 1976 clarified that in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of investment allowance and additional depreciation. At once it has to be stated that the bulwork of strength of the Revenue is the judgment of the Bombay High Court in the case of Shah Construction Co. A careful perusal of the judgment of the Bombay High Court shows that the High Court relied heavily on the findings of the Tribunal contained in para 7 of the judgment. It is pertinent to point out that in that case the assessee's own case was that the dumpers were being purchased to secure "efficient system of transport" and the Tribunal also referred to the actual user of the dumpers for that purpose so as to come to the conclusion that except for tipping arrangement activated by an oil pressure pump, the dumpers were identical to trucks. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, such machinery is entitled to investment allowance under s. 32A. The case laws marshahled by the learned counsel for the assessee all go to support the claim of the assessee for investment allowance and additional depreciation and therefore, we uphold the decision of the CIT(A) on this point. 9. As regards the question whether the trucks, dumpers and tippers should be regarded as road transport vehicle, we have looked into the registration certificates of these vehicles. Although the vehicles are subject to taxation initially when they are registered but they were exempt from periodical taxation by the RTO a fact which goes to establish that these vehicles were all used at the site of work where business is carried on. It als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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