COMMISSIONER OF INCOME TAX Vs. DOWEL ERECTORS

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue arising from the assessment of the respondent Dowel Erectors, for the assessment year 1979-80 is as to whether the assessee was entitled to investment allowance under Section 32A(2)(b)(iii) of the Income-tax Act on the ground that its activity amounted to manufacture or production of an article or thing.

(2.) THE activity of the assessee has been described by the Tribunal as under:

(3.) APPLYING those tests here, there can be no doubt that the erection of the boiler was intended to be fixed permanently. It has, therefore, to be regarded as immovable property and not as movable property, although, after it is detached and when moved is capable of being regarded as movable property.