9911796707
TMI Blog2005 (3) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1961, for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal erred in law in holding that the investment allowance was allowable to the assessee under section 32A on generator?" The reference relates to the assessment year 1986-87. Briefly stated, the facts giving rise to the present reference are as follows: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income-tax (Appeals) has been upheld by the Tribunal. We have heard Sri A.N. Mahajan, learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent-assessee. Learned standing counsel submitted that as the generator has not been used for the purpose of manufacture or production of any article or thing, it is not plant or machinery falling under section 32A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate has been allowed or where the actual cost of which is allowable as deduction by way of depreciation or otherwise while computing the income chargeable under the head "Profits and gains of business or profession" of any one previous year. Sub-section (2) of section 32A of the Act specifies the ship or aircraft or machinery or plant eligible for investment allowance of which the relevant portion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that any machinery or plant which has been installed for the purpose of business of manufacture or production of any article or thing not falling under the second proviso to section 32A of the Act is entitled for investment allowance. The words "business of manufacture" or "production" are very wide terms and would encompass the whole set of machinery and plant which is used for the purpose of m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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