9911796707
TMI Blog2002 (6) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee-company is an industrial undertaking and is entitled to investment allowance under section 32A of the Income-tax Act, 1961?" The question was referred at the instance of the Revenue. The Appellate Tribunal has found that the assessee is entitled to the investment allowance under section 32A of the Income-tax Act. For arriving at this finding, the Appellate Tribunal has relied on the decision reported in CIT v. Pressure Piling Co. (India) P. Ltd. [1980] 126 ITR 333 (Bom). In that judgment, the Bombay High Court had held that an industry which was engaged in the business of construction activities could be given the benefit of investment allowance. In that case, the assessee was one Pressure Piling Company and was in the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee pointed out that there was some distinguishing feature in the present references. Learned counsel points out that in both the matters the claim of the assessee was that piles were being sunk in the construction activity of the assessee and for that, there were a number of components manufactured by the assessee-company itself. Learned counsel was at pains to point out from paragraph 7 of the Tribunal's order in T.C. No. 594 of 1987. He drew our attention particularly to the opening lines which are as under: "As regards merits, we find that the assessee is engaged in the business of construction of factory buildings, plant buildings, civil engineering works, bottling plant, etc. During the year of account it had executed jobs rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of articles manufactured or produced by the assessee, used in the construction activity. Learned counsel also invites our attention particularly to a portion: "It cannot be said that if a person constructs the entire dam including the foundation, he is not manufacturing or producing an article but where he merely lays the foundation for such dam he is manufacturing or producing an article. The piles, which the assessee lays by his particular method become a fixture in the earth. It ultimately becomes an integral part of the dam, bridge or building, as the case may be. It is not as if the assessee supplies pre-fabricated piles, which are bored into the earth by the contractor or owner, as the case may be." Learned counsel points ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te. It does appear to us that the position in the High Court was also similar and, therefore, the more appropriate course to adopt is to send back the matter to the Tribunal for a fresh decision of the appeal on the merits after hearing both sides, in accordance with law in the light of the decisions of this court on this point. We order accordingly." The situation must be stated to be similar here also. However, there are some stray observations that the assessee's case throughout was that it was using piles which were manufactured by it. It would be therefore better that the matter goes back and is decided on the merits by the Tribunal after giving a fresh hearing to the assessee. The assessee may raise all the questions and if necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
