1998 (2) TMI 98

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..... has been referred for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that investment allowance under section 32A of the Income-tax Act, 1961, was admissible on the machinery used by the assessee for boring operations for extracting water from underground ?" At the outset, it is brought to our notice that an identical question was .....

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..... he purpose is purely subterranean, then we cannot say that the assessee is producing any article or thing. Mere physical emergence of water does not necessarily constitute in the commercial sense production of an article or thing. Any mechanical operation may, for a purpose, incidentally produce things but of no surface use. In such a situation, it cannot be said that such non-commercial thing wou .....

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