9911796707
TMI Blog1998 (8) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ery employed in the manufacture of electrical bulbs ?" The facts in brief are as follows : The assessee is a company carrying on business in the manufacture of electrical bulbs. The assessment year is 1979-80. The assessee claimed investment allowance at 25 per cent. of the cost of the plant and machinery which was Rs. 92,81,994. The claim of the investment allowance came to Rs. 23,20,498. The main contention of the assessee is that the electrical bulbs do not fall under item No. 12 of the Eleventh Schedule. The Income-tax Officer disallowed the investment allowance claimed by the assessee. On appeal, the Commissioner of Income-tax allowed the same, agreeing with the assessee that electrical bulbs do not fall under item No. 12 of the El ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which the ship or aircraft was acquired or the machinery or plant was installed or, if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, of a sum by way of investment allowance equal to twenty-five per cent. of the actual cost of the ship, aircraft, machinery or plant to the assessee... (2) The ship or aircraft or machinery or plant referred to in sub-section (1) shall be the following, namely :---... (b) any new machinery or plant installed after the 31st day of March, 1976---... (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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the desired service, it is a domestic electrical appliance and constituted a domestic electrical appliance and, consequently, the assessee is not entitled for the investment allowance. He also relied on a judgment of the Gujarat High Court in Viswa and Co. v. State of Gujarat [1966] 17 STC 581, wherein-electrical fans were held to be domestic electrical appliances within the meaning of entry 52 of Schedule B of the Bombay Sales Tax Act, 1953. Before considering whether the electrical bulbs are domestic electrical appliances within the meaning of item No. 12 of the Eleventh Schedule to the Income-tax Act, we will deal with the judgments, relied on by learned standing counsel for the Revenue. In Viswa's case [1966] 17 STC 581, the Guj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not relevant. It is not enough if the article is capable of rendering the desired service in order to fall within the meaning of item No. 12 of the Eleventh Schedule. It has to satisfy the other condition, viz., that it is a domestic electrical appliance. We have already referred to item No. 12 of the Eleventh Schedule in the earlier paragraph. The Explanation to item No. 12 says "domestic electrical appliances" means electrical appliances normally used in the household and similar appliances used in places, such as, hotels, restaurants, hostels, offices, educational institutions and hospitals. It is neither the case of the Revenue nor the assessee that an electrical bulb is used only in the household, as it is not only used in the hous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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