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TMI Blog1984 (1) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal the assessee has done construction work of Sulchi Dam and Dahaj Amod Mular State Highway. The total receipts on the work executed by the assessee is Rs. 1,20,08,964 on which gross profit disclosed by the assessee is Rs. 12,40,726 as against gross profit of Rs. 11,41,394 on total receipts of Rs. 81,63,991 shown in immediate preceding year. Before the ITO the assessee claimed that the assessee is entitled for investment allowance of Rs. 77,263 on tractor and trailer. According to him, the tractors and trailers are machinery and are eligible for investment allowance. The tractors are used for construction of dam. The ITO did not agree with the claim of the assessee. According to him, the business in respect of construction of dam and roa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r investment allowance. He further submitted that tractors are vehicles. Therefore, they do not form part of the machinery. 3. We have heard the rival submissions and considered the material on record. Before going to the issue whether tractors and trailers are part of the machinery or not we have to see whether the assessee is an industrial undertaking. In section 32A(2)(b)(iii) definition of 'industrial undertaking' is given. We reproduce the same for ready reference : "(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." From the reading of sub-clause it appears that if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Explanation to the relevant provision as under: "Industrial undertaking means an undertaking in the manufacturing, production or processing of goods or articles or in mining or in the generation or distribution of electricity or in other form of power." The assessee, a wholly owned Government company, was engaged in the construction of dams, barge, etc., of a considerable magnitude. Now the question before their Lordships was whether the assessee is an industrial undertaking in view of the above definition. Their Lordships answered the question in the affirmative and in favour of the assessee. A similar issue was considered by the Tribunal in the case of Progressive Engg. Co. The facts before the Tribunal were that the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the above discussions, in our view, the business of the assessee is construction of a thing and is covered by the definition of 'industrial undertaking' given in section 32A(2)(b)(iii). 6. Now, the only question remaining for our consideration is whether tractors and trailers are entitled for investment allowance. The learned counsel Shri Divatia drew our attention towards the order of the Tribunal referred to above as well as the decision of the Calcutta High Court in the case of Orissa Minerals Development Co. Ltd. wherein their Lordships have considered the issue whether tractors and dumpers are road transport vehicles or not. Their Lordships pointed out at page 436 that in case of depreciation admissible to different machine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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