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TMI Blog2002 (4) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... ad. The quarry cannot be run without the help of dumpers. The dumpers are used in taking the rubbles from quarry to the crusher. (3) The learned CIT(A) has erred in relying upon the Gujarat High Court decision in case of CIT vs. Shiv Construction (1987) 62 CTR (Guj) 58 : (1987) 165 ITR 159 (Guj) inasmuch as the said case was never discussed on merits an that the concession was given by the assessee. 2. Shri A.C. Shah, the learned C.A. represented the assessee. He submitted that the assessee is engaged in the business of mining and extracting stone/rubble and crushing into Kapchi, grit and metal, which constitutes a manufacturing activity. The assessee is thus engaged in the business of manufacture and production of an article or thing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R (Guj) 37 : (1987) 163 ITR 237 (Guj); and (c) Empire Industries Ltd. vs. Union of India (1986) 162 ITR 846 (SC). 2.2. Shri Shah further submitted that the reliance placed by the learned Departmental Representative and by the Department on the judgment of Hon'ble Gujarat High Court in the case of Shiv Construction is not correct as the facts of that case are clearly distinguishable. That was case of a firm engaged in the business of construction of roads and buildings. The assessee was, therefore, not entitled to development rebate on the equipments used in the business of construction of roads and buildings. Such a view is clearly supported by the judgments of the Hon'ble Supreme Court in the cases of CIT vs. N.C. Budhiraja Co. (19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a judgment delivered by the Hon'ble Karnataka High Court. In this case the business of the assessee-company consisted of purchase and sale of granite blocks. The assessee after purchasing blocks carried out an activity of chipping and sizing of granite. The Hon'ble Karnataka High Court held that such, activity did not amount to manufacture or processing of goods and the equipments viz. mobile crane and air compressor used in such activity is not eligible for grant of investment allowance under s. 32A. In a subsequent judgment, the Hon'ble Karnataka High Court in the case of CIT vs. Gogte Minerals (1996) 136 CTR (Kar) 499 : (1997) 225 ITR 60 (Kar) has held that mining operation carried on for excavating iron ore and sequestering the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, Hind Nippon Rural Industries (P) Ltd. case cannot be of any assistance to the Department." 5.1. The business carried on by the assessee in the present case is that of mining and quarrying of stone, rubble and converting it into Kapchi, grit and metal, etc. The ratio of the decision in the case of Hind Nippon Rural Industries (P) Ltd. relied upon by the AO in the assessment order is, therefore, not applicable to the facts of the present case. 5.2. Reliance placed by the learned Departmental Representative on the judgment of the Hon'ble Gujarat High Court in the case of CIT vs. Shiv Construction Co. also does not assist the Department in any manner, as that is a case of a firm which is engaged in the business of construction of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding that investment allowance was allowable on the cost of new dumpers." 5.5. The Hon'ble Karnataka High Court in the case of Dy. CIT vs. Mysore Minerals Ltd. (2001) 167 CTR (Kar) 11 : (2001) 250 ITR 730 (Kar) has decided a similar issue in favour of the assessee. The assessee in that case carried on activity of mining. The business of the assessee was extracting granite from quarries, converting it into slabs, and after cutting and polishing the slabs, effecting their-sale. The assessee claimed investment allowance under s. 32A in respect of earth-moving equipments, crane, oil engine pumps and machinery installed for the purpose of its business. The Hon'ble High Court held that the process of extracting granite and cutting it into sla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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