9911796707
TMI Blog1998 (6) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... om can be conceivably looked upon for the purpose of producing an article or thing ? (ii) there is production of food materials in a hotel ? (iii) the assessee is entitled to the investment allowance under section 32A of the Income-tax Act, on the building housing the kitchen, producing the food stuffs ? 2. Whether, on the facts and in the circumstances of the case, is the assessee an industrial undertaking engaged in the production of an article or thing as contemplated under section 32A of the Income-tax Act, 1961 ? The question before the Appellate Tribunal was whether the assessee, engaged in the business of running a hotel, was entitled to investment allowance on the plant and machinery, employed in the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 ITR 289 (Ker), which the Appellate Tribunal also adverted to. In Casino (Pvt.) Ltd. [1973] 91 ITR 289 (Ker), the question for consideration was whether the activity carried on in preparing articles of food from raw materials in a hotel, would constitute manufacture or processing of goods within the meaning of section 2(6)(d) of the Finance Act, 1968. An industrial company engaged in the manufacture or production, was liable to tax at a lesser rate under section 2(6)(d) of the Finance Act, 1968. This court, reviewing the entire case law germane on the point held in Casino (Pvt.) Ltd. [1973] 91 ITR 289 (Ker) as follows (page 299) : The question ultimately would be whether in common parlance the activity of the assessee could be said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t held that a hotel is not an industrial company, because the activity of conversion of raw materials into food in a hotel does not amount to manufacture or processing of goods within the meaning of section 2(7)(c) of the Finance Act, 1979, and, therefore, a hotel is not entitled to concessional rate of tax as specified under clause 2(i)(a) of paragraph E of Schedule I to the Finance Act, 1979. From these authorities, it is amply clear that this court has discussed the question threadbare whether a hotel is an industrial undertaking, engaged in the manufacture or processing of an article, and on both the occasions this court answered the question in the negative, that is, in favour of the Revenue and against the assessee. The question ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
