2002 (2) TMI 23

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..... alled therein?" - At the most assessee can claim that the assessee prepares eatables for customers. Preparation of eatables cannot tantamount to manufacturing of articles or things. - When the assessee is not manufacturing any articles or things, neither can a building be treated as plant and machinery nor the electric fittings or furniture in the hotel be treated as plant and machinery for the pu .....

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..... iture and electrical goods. The relevant assessment year is 1983-84. The Income-tax Officer has referred to the view taken by the Commissioner of Income-tax in the case of this very assessee, in the order under section 263 of the Income-tax Act for the assessment year 1981-82 and rejected the claim of the assessee. In appeal before the Appellate Assistant Commissioner, the Appellate Assistant Comm .....

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..... or the Revenue submits that the latest decision on the issue in this case is of the Madras High Court in the case of Adayar Gate Hotels Ltd v. CIT [2000] 241 ITR 279, wherein the Madras High Court has taken the view that a hotel is not an industrial undertaking. It does not produce articles or things. Therefore, the assessee is not eligible for investment allowance. While considering this issue th .....

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..... ricity or any other form of power; (ii) in a small-scale industrial undertaking for the purposes of business of manufacture or production of any article or thing; (iii) in any other industrial undertaking for the purposes of business of construction, manufacture or production of any article or thing, not being an article or thing specified in the list in the Eleventh Schedule. Admittedly, th .....

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..... assessee prepares eatables for customers. Preparation of eatables cannot tantamount to manufacturing of articles or things. When the assessee is not manufacturing any articles or things, neither can a building be treated as plant and machinery nor the electric fittings or furniture in the hotel be treated as plant and machinery for the purpose of investment allowance under section 32A of the Act .....

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