MITHY GRANITE P LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Since in all these matters, a common question is urged, all these matters are taken up together and disposed of by this common order.

(2.) I . T. A. No. 31 of 2001 is an appeal filed under Section 260A of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), challenging the correctness of the order dated September 22, 2000, made in I. T. A. No. 1582/Bang of 1992 by the Income -tax Appellate Tribunal, Bangalore Bench (hereinafter referred to as 'the Tribunal'). The assessment year which is the subject matter of dispute in the said appeal relates to the year 1989 -90. In I. T. R. C. Nos. 23 and 24 of 1997, the Tribunal pursuant to the order made by this court calling for reference referred the two questions to this court as arising out of an order dated December 1,1995, made in I. T. A. No. 958/Bang of 1989 for the assessment year 1984 -85. They are as follows : '1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that granite would fall under the category of 'mineral' in the context of Clause (b)(ii) of Sub -section (2) of Section 80HHC 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the extraction of granite was a manufacturing activity and, therefore, the assessee was entitled to investment allowance under Section 32A on the plant and machinery held by it in its operations ?'

(3.) IN I. T. R. C. Nos. 15 and 16 of 1997, pursuant to the order made by this court seeking for reference, the Tribunal has referred two questions for consideration to this court as arising out of an order dated January 30,1996, made in I. T. A. Nos. 584 and 585/Bang of 1990. However, the first question referred to this court is similar to the first question referred to this court in I. T. R. C. Nos. 23 and 24 of 1997. The second question referred to this court reads as follows : '2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Board Circular No. 729, dated November 1, 1995 (see [1995] 216 ITR 141 would come into effect only for the assessment year 1995 -96 and later and not for the earlier assessment years ?'