COMMISSIONER OF INCOME TAX Vs. BAKHTAWAR SINGH

JUDGEMENT

(1.) THIS is an income -tax reference under Section 256(1) of the Income -tax Act, 1961, at the instance of the Revenue and the following three questions have been referred by the Tribunal for opinion of this court :

(2.) SUFFICE it to say that the assessee is a registered firm engaged in the business of manufacturing and supply of plant and equipment in the nature of ash handling and oil distribution system for thermal power plants and steel plants in the country on turnkey basis. It is also engaged in the manufacture, fabrication and erection of steel works for public sector undertakings and Government departments. It is further engaged in the construction of industrial foundations, public buildings and housing complexes for steel plants and thermal power plants. The assessee has established separate industrial undertakings at various work sites formanufacture, processing, erection, testing and commissioning of ash handling systems. In these circumstances, the assessee claimed relief under Sections 32A, 80HH and 80I of the Income -tax Act, but the Assessing Officer disallowed the claim of the assessee.

(3.) IT would be relevant to mention here that after filing this reference, a decision was pronounced by the Supreme Court in the case of CIT v. N. C. Budharaja and Co. : [1993]204ITR412(SC) . Their Lordships of the Supreme Court have made a distinction between civil construction and industrial production or manufacture and have taken a view that so far as the industrial production or manufacture is concerned, they are entitled to the benefit of Sections 32A, 80HH and 80I of the Income -tax Act and in civil construction, the benefit is not permissible. In the present case, the assessee is engaged in building activity of civil construction as well as industrial establishment of industries for production and manufacture. This distinction has not been made in the facts which have been referred to us ; therefore, instead of answering these aforesaid three questions, we remand this case to the Tribunal to dispose of the matter in the light of the aforesaid decision, N. C. Budharaja and Co. : [1993]204ITR412(SC) . Accordingly, this reference is remanded back to the Tribunal to redetermine the issue in the light of the aforesaid decision, N.C. Budharaja and Co. : [1993]204ITR412(SC) .