1986 (7) TMI 140

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..... with boarding and lodging facilities and a restaurant. The case of the assessee is that the production of eatables in the hotel entitles it to the investment allowance under s. 32A as well as the relief for a new industrial undertaking under s. 80J. The case of the Revenue is that the activity of the assessee does not amount to manufacture of any article nor is it an industrial undertaking so as .....

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..... it cannot denied that they are engaged in the production of an article since be they are in the business of producing eatables. Therefore, the cases cited by the Revenue do not stand in the way of the assessee getting the benefit of investment allowance under s. 32A. We have taken this view in the case of M/s Hotel Woodside by our order dt. 6th Dec., 1985 in ITA. No. 518/Bang/83, and we are not pe .....

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..... if the assessee is producing an article and may fall under sub-s. (4), generally the special provision under sub-s. (6) precludes the treatment of the assessee as an industrial undertaking under s. 80J. A reading of the sub-s. (6) especially with the marginal heading of the said indicates that the deduction is granted under the sub-section for certain identified cases, and the hotel business bein .....

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