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TMI Blog1998 (6) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... e investment allowance on welding set, car washer and platform scale? 2. Whether, on the facts and in the circumstances of the case and having regard to the provision contained in s. 32A(2)(b)(ii), the Tribunal is right in law in holding that the assessee-company is entitled for the investment allowance on electric motor and platform scale? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the expenditure incurred in connection with black-topping and contribution to the cost of improvement and development should be regarded as revenue expenditure? These questions arise out of the assessment of the respondent, Tamil Nadu Magnesite Ltd., Salem, for the asst. yrs. 1981-82 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t access (sic-nexus) between the mining operation of the assessee and the items of machinery in respect of which allowance has been claimed. Counsel relied upon the judgment of the Calcutta High Court in the case of CIT vs. Machinery Mfg. Corpn. Ltd. (1992) 105 CTR (Cal) 306: (1992) 198 ITR 559(Cal) : TC 16R.1524, wherein it was held that each and every item of machinery and plant is not eligible for investment allowance even though it may be used in the business and further that such machinery or plant must have a close nexus with the business of construction, manufacture or production of any article or thing, not being article or thing as provided for in s. 32A of the IT Act, 1961. 5. Counsel for the assessee, on the other hand, submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng carried on by the assessee. 8. The CIT(A) as also the Tribunal have, in our view, rightly held that the view adopted by the ITO was too narrow, having regard to the language of the section. We are inclined to agree what the Tribunal has held with regard to welding sets, platform scales and electric motors, as all these items have a reasonable nexus with the business that is carried on by the assessee. The use of electric motors is necessary for running the machinery and it is not possible to record electric motors as a separate item without the aid of which machinery can (sic-cannot) be run. Platform scales are required for weighing the material that is mined whenever it is necessary to do so, and can be regarded as being reasonably n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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