Madras H.C : Whether, on the facts and in the circumstances of the case, the activities carried out for the preparation of granite blocks amounted to manufacture of an article within the meaning of s. 32A and the assessee is entitled for investment allowance under s. 32A ?

High Court Of Madras

CIT vs. Bishal Enterprises

Sections 32A

Asst. Year 1984-85

R. Jayasimha Babu & Mrs. A. Subbulakshmy, JJ.

Tax Case No. 161 of 1993

1st December, 1998

Counsel Appeared

Mrs. Chitra Venkataraman, for the Revenue : Philip George, for the Assessee

JUDGMENT

MRS. A. SUBBULAKSHMY, J. :

At the instance of the Revenue, the following question has been referred to us for consideration :

“Whether, on the facts and in the circumstances of the case, the activities carried out for the preparation of granite blocks amounted to manufacture of an article within the meaning of s. 32A and the assessee is entitled for investment allowance under s. 32A ?”

The year of assessment involved is 1984-85. The assessee is a registered firm. It was engaged in the business of mining granite blocks and exporting the same. The assessee claimed investment allowance which was negatived by the ITO. On appeal the CIT allowed the assessee’s claim and the Tribunal also confirmed the order of the CIT. On that this reference has arisen.

A similar question was considered by this Court in Tax Cases Nos. 810 and 811 of 1989 and this Court by its order dt. 27th Oct., 1998 CIT vs. Gomatesh Granties (2000) 246 ITR 737 (Mad), has answered this question against the assessee and in favour of the Revenue. Following the above decision and for the reasons stated therein, we answer the question referred to us, in favour of the Revenue and against the assessee.

[Citation : 247 ITR 484]

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