COMMISSIONER OF INCOME TAX Vs. BAKHTAWARSINGH BALKISHAN BHILAI

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue and the following question of law has been referred by the Tribunal for answer by this court :

(2.) THE brief facts of the case are that the assessee is a registered firm engaged in the business of construction of industrial foundations, public buildings and housing complexes for steel plants and thermal power plants. THE assessee claimed relief of investment allowance under Sections 32A and 80HH of the Act. THE Assessing Officer has disallowed the claim of the assessee for earlier assessment years.

(3.) SHRI Tankha, learned counsel for the petitioner, has submitted that so far as the construction work is concerned, this will not come in the scope of industrial undertaking because of the decision given by their Lordships of the Supreme Court in the case of CIT v. N. C. Budharaja and Co. [1993] 204 ITR 412. Therefore, the order of the Tribunal to this extent is not correct. The contention of SHRI Tankha is justified, as their Lordships of the Supreme Court in the aforesaid case have already taken the view that civil construction does not involve any manufacturing activity. Therefore, it is not an industrial undertaking and to that extent, the order of the Tribunal is not justified.