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TMI Blog1991 (1) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Tribunal was right in holding that the assessee was not entitled to investment allowance under section 32A of the Act in respect of mobile crane and air compressor ? " This reference arises out of the assessment proceedings for the assessment year 1977-78. The assessee claimed the benefit of investment allowance regarding mobile crane and air compressors owned by it. The assessing authority states that the machinery has been used in "open cast mining". However, he states that mining does not fall within the concept of manufacture or processing of goods and, therefore, section 32A(2)(b)(iii) of the Income-tax Act, 1961, is not attracted. The machinery was not used for the production of any article or thing. In the appeal filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . of the sales were on export. It is further stated: "Under the assessee's agreement with M/s. Pallava Granite Industries dated 16-9-1974, the latter agreed to sell to the assessee a quantity of 525 cubic metres of block granite in sets from the granite quarry leased by Pallava Granite Industries from the Tamil Nadu Government. The quantity of block granite to be supplied was to conform to the requirements of the assessee as required by the foreign buyers of the assessee. " Mr. Sarangan, learned counsel for the assessee, contended that the granite pieces are produced or at any rate processed and, therefore, section 32A was attracted. Learned counsel further pointed out that, according to the assessing authority, the assessee-company used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like a trader of tea packets or powdered minerals having obtained them after the commodity has been processed. The alleged processing, if at all, carried out by the assessee is too marginal to elevate its status to that of a main activity of the assessee. " Thereafter, it was concluded that merely because some articles may undergo some kind of processing, the entire income cannot be attributed to the processing of the said articles and the object of the activity carried on by the assessee is relevant to consider the nature of the main activity of the assessee. By applying these principles, it was held that the assessee was not an "industrial company". There is nothing on record to show that the facts pertaining to the activity of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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