RAMDEO TILES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an income-tax reference at the instance of the assessee and the following question of law has been referred by the Tribunal for answer by this court :

(2.) AS per the facts, it appears that tiles, after certain process, have to be dried and for that, they have to be placed on racks for drying in sheds. This process of drying is part of the manufacturing process and sheds which are constructed for this purpose formed part of plant arid machinery. Tiles cannot be said to be ripe for marketing unless they are dried properly and hence drying of tiles is an essential part of the manufacturing process and that being so, it has to be done at sheds. Therefore, sheds which are meant for drying of the tiles are an integral part of the process of manufacturing and part of plant and machinery. Hence, it comes within the definition of plant and machinery and, as such, the assessee is entitled to the benefit of investment allowances. The question is answered in favour of the assessee and against the Revenue.