9911796707
TMI Blog1998 (3) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... al Parshuram Bishmile Chabua is owning a tractor, which was being used for transporting tea in the tea garden or tea plantation. The owner of the tractor claimed investment allowance in respect of the tractor for the assessment year 1984-85 under section 32A of the Act. The assessing authority held that tractors are road transport vehicles and accordingly negatived the claim of investment allowance on tractors. On appeal, the Commissioner of Income-tax (Appeals) upheld the order of the assessing authority. Aggrieved by this order, the assessee took up the matter to the Appellate Tribunal. The Appellate Tribunal, however, referring to the facts and circumstances of the case, no doubt, recorded a finding in paragraph 2 of the judgment as foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansport vehicle", let us now refer to the provision of section 32A of the Act, which deals with "investment allowance", with which question we are now concerned. It reads : "32A. Investment allowance.---(1) In respect of a ship or an aircraft or machinery or plant specified in sub-section (2), which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section, be allowed a deduction, in respect of the previous year 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed for the purpose of propulsion), would not come within the clause "road transport vehicles". In that view of the matter, the view taken by the assessing authority holding that the tractor is a road transport vehicle is erroneous. Again, the Appellate Tribunal, referring to the view taken by the assessing authority, came to a different conclusion that in respect of a motor vehicle which is being used inside the factory or plant and required for the purposes of plantation work only, the assessee was entitled to claim investment allowance, provided other conditions are fulfilled. Thus, the view taken by the Appellate Tribunal must be held to be correct. Accordingly, we answer the question in the negative and in favour of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
