9911796707
TMI Blog1996 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 5AA from April 1, 1981 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in setting aside the orders of the lower authorities and allowing investment allowance and directing the Income-tax Officer to ask the assessee to furnish the particulars of other things ? " To answer these questions it will be convenient to refer to section 32A which provides for investment allowance in respect of ship, aircraft, machinery, plant, etc. This section, in relevant part, is as under : " 32A(2)(b)(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 Elev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his submissions, Mr. Rastogi cited some decisions of the High Courts of Allahabad, Madhya Pradesh and Calcutta. In CIT v. Nandlal Cold Storage [1993] 199 ITR 327 (All) similar questions as in the present case were raised and the court answered the questions in favour of the Revenue. The court observed that the operation of a cold storage plant did not result in the manufacture or production of any article or thing and, thus, the condition precedent for claiming investment allowance did not exist in the case of a cold storage. Similar is the view expressed in Mittal Ice and Cold Storage v. CIT [1986] 159 ITR 18 (MP) and in S. B. Cold Storage Industries Pvt. Ltd. v. CIT [1987] 166 ITR 646 (Cal). Mr. Rastogi, however, also pointed out a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, in favour of the Revenue and against the assessee. In this context, the Supreme Court observed : " In a cold storage, vegetables, fruits and several other articles which required preservation by refrigeration are stored. While, as a result of long storage, scientific examination might indicate loss of moisture content, that is not sufficient for holding that the stored articles have undergone a process within the meaning of section 2(7)(c) of the Finance Act, 1973. " Taking the view following the Supreme Court decision as to what are the functions of the cold storage, we find ourselves unable to agree with the view expressed by the Punjab and Haryana High Court and we are inclined to follow the decisions of the Allahabad, Madhya Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
