LAWS(MPH)-2001-8-34

COMMISSIONER OF INCOME TAX Vs. MEWARA CONSTRUCTION

Decided On August 06, 2001
COMMISSIONER OF INCOME-TAX Appellant
V/S
MEWARA CONSTRUCTION Respondents

JUDGEMENT

(1.) THIS is a reference made by the Tribunal at the instance of the Revenue under Section 256(2) of the Income-tax Act, 1961, to answer the following question of law :

(2.) THE aforesaid question arises on the following facts as contained in the statement of case sent by the Tribunal.

(3.) LEARNED counsel for the Revenue urged that the question referred to this court now stands concluded by the decision of the apex court rendered in the case of CIT v. N. C. Budharaja and Co. [1993] 204 ITR 412, which was rendered pending this reference. It was his submission that in view of the law laid down by their Lordships in Budharaja's case [1993] 204 ITR 412 (SC), the answer to the question has to be in favour of the Revenue for the reason that the activity undertaken by the assessee in this case does not amount to manufacture like the one involved in N. C Budharaja's case [1993] 204 ITR 412 (SC), and hence the assessee cannot claim the investment allowance under Section 32A of the Act on an investment that they have made on machinery.