9911796707
TMI Blog1996 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... r our consideration and opinion : " 1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the assessee is an 'industrial undertaking' engaged in the manufacture or production of articles or things and thereby holding that it is entitled to deduction under sections 80HHA and 80J of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the assessee is entitled to investment allowance under section 32A and whether construction of buildings, dams, roads, etc., amounts to manufacture or production of articles or things as envisaged under section 32A of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nazir Singh, learned counsel for the non-applicant. Section 80HHA of the Act permits deduction in respect of profits and gains from newly established small scale industrial undertakings in certain areas. Section 80J of the Act permits deduction in respect of profits and gains from newly established industrial undertakings or ships or hotel business in certain cases. Section 32A of the Act deals with investment allowance. Section 32A(2)(b)(iii) provides as under : (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 or thing specified in the list in the Eleventh Schedule." Counsel for the non-applicant very frankly brought to our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in granting investment allowance under section 32A of the Act. It is settled law that construction of buildings, roads and dams, etc., does not amount to manufacture or production of articles or things as envisaged under the Act. The aforesaid decision, as fairly and frankly submitted by counsel for the non-applicant, concludes the matter against the assessee. In the result, we answer both the questions in the negative, i.e., in favour of the Department and against the assessee. This miscellaneous civil case is disposed of in terms indicated above, but without any orders as to costs. Counsel fee for each side is, however, fixed at Rs. 750, if certified. A copy of this order shall be transmitted to the Tribunal for further acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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