9911796707
TMI Blog1989 (6) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) erred in confirming the action of the ITO in computing the loss of live stock at Rs. 4,93,430 as against Rs. 5,06,660 on the plea that the value of live stock sent for salvage cannot be valued at 50 per cent of average cost. III. The learned CIT(A) erred in confirming the action of the ITO in not considering the company as industrial company ignoring that the company carries on business of dairy farming and an industrial company in the contest of s. 2(7)(c) of the Finance Act." 2. In so far as the second ground is concerned, it is seen that the issue is concluded in favour of the assessee by the order of the Tribunal in ITA Nos. 1585 and 1586/(Bom)/1984 of 28th May, 1987 as also in ITA Nos. 1627 and 1628/(Bom)/1985 of 27th Jul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) further supported his reasoning by the decision of the Supreme Court in the case of Chowgule Co. vs. Union of India (1981) 47 STC 124 (SC) and also the definition of the term "processing" as given in the Webster's Dictionary. 4. The assessee is still aggrieved and has come up in appeal before us. Shri Arvind Dalal, learned counsel appeared for the assessee and Shri Keshav Prasad, learned senior Departmental Representative appeared for the Revenue. After hearing both parties at length and on careful consideration of the material on our file, we see merit in the claim of the assessee. The assessee in this case obtains milk from the live stock of cows and buffaloes maintained by it. The milk so obtained is processed, pasteurized a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abour or mechanical power. The second meaning is a very limited sense to describe the transformation or raw material into a commercial commodity or a finished product which has a separate identity. 6. Requirement of s. 32A is that the new machiney or plant installed in the industrial undertaking should be used for the purpose of business of construction, manufacture or production of any article or thing not being article or thing specified in the list in the Eleventh Schedule. What is necessary is, therefore, that the industrial undertaking must manufacture or produce article not specified in the Eleventh Schedule. The process of production as to whether it is by manufacturing process or otherwise, in our view, is not material. As long a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the aid of machinery amounts to manufacturing process though the end product remains to be the same namely stone. The learned counsel also seeks reliance on the decision of the Tribunal in the case of Sri Balaji Metal Finishers vs. ITO (1986) 15 ITD 26 (Hyd) (TM) Having regard to the ratio of the above decisions and keeping in view the fact that the pasteurised milk bottled by the assessee and marketted by it is a commercial commodity distinct from the raw material out of which it is produced, we hold that the assessee is entitled to the benefits of investment allowance under s. 32A of the Act. The ITO is directed to allow the claim if the assessee otherwise satisfies the other conditions. 8. The last ground is in regard to claim of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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