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TMI Blog1990 (6) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... sts of Revenue as the ITO had inadvertently allowed investment allowance amounting to Rs. 26,969 and Rs. 2,473 and additional depreciation amounting to Rs. 5,394 and Rs. 494, respectively, for asst. yrs. 1983-84 and 1984-85. It was observed by the CIT that the assessee is not manufacturing any article or thing within the meaning of s. 32A and further such machineries were not installed but these machineries are moving and do not require any installation at any stage and hence no investment allowance could be validly granted on the aforesaid machinery. He therefore set aside the assessment orders and directed the ITO to withdraw the amount of investment allowance and additional depreciation granted by him. 2. The assessee has challenged t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction would be eligible for grant of investment allowance provided the other conditions mentioned in s. 32A are satisfied which, in the present case, are fully satisfied and has not been disputed by the ITO. Alternatively it was contended that the business of constructing buildings is also covered by the term `manufacture or production of any article or thing, not being an article or thing specified in the XI Schedule'. As regards the interpretation of term installation made by the CIT in the impugned order under s. 263, it was contended that it is not necessary that item of plant and machinery should be installed or embedded in earth in order to qualify for grant of investment allowance. What is required is only that the plant and machiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontended that the assessee is not entitled to grant of any investment allowance or additional depreciation on the various items of plant and machinery purchased for carrying or the work of construction of buildings, it was contended that construction work does not amount to carrying out the work of manufacture or production of any article or thing contemplated in s. 32A. furthermore, the item of plant and machinery had not been installed and were movable items which are not entitled to investment allowance. He relied upon the detailed reasons given in the order passed by the CIT under s. 263. 5. We have carefully considered the rival submissions made by the learned representative and have also gone through the order of the learned depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to in sub-s. (1) has been further defined in s. 23A (2) Sec. 32A(2)(b) (iii) is reproduced hereunder which is relevant for the purposes of our consideration relating to the aforesaid matter : "32A(2)(b)(iii) In any other undertaking for the purposes of business of construction, manufacture of production of any article or thing not being an article or thing specified in the list in the Eleventh Schedule." A comparison of the aforesaid provision with the Explanation given in s. 45(d) of the WT Act clearly reveals that the meaning and scope of the term "any other understanding using plant and machinery" as contemplated in s. 32A is much wider than the meaning of an industrial undertaking defined in s. 45(d) of the WT Act. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t being an article or thing specified in the list of the Eleventh Schedule". The article or thing must be other than those listed in the XIth schedule. The term 'article or thing' used in the aforesaid section is capable of very wide meaning than the term 'goods'. Since the building constructed by the assessee is not included in the list specified in the XIth schedule, the business of construction of building carried out by the assessee can be said to be manufacture or production of an article or thing for the purposes of grant of investment allowance under s. 32A. This view is fortified by the decision of ITAT in the case of Walaiti Ram Gupta Co. vs. ITO (1990) 33 ITD 544 (Del). 7. In view of aforesaid discussions, we are of the consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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