TMI Blog2002 (7) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... , entitled to depreciation at 30 per cent.?" - Learned counsel has placed reliance on a reported decision of this court, dated May 11, 2002, rendered in CIT v. Bhola Ram, wherein this court has held that rig and compressors mounted on a lorry used for drilling do not fall in the category of heavy machinery or motor lorry under item No. III(ii)D(4) of Part I to the Income-tax Rules, 1962. The court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry (4) of item No. III-D of Part I of Appendix I to the Income-tax Rules, 1962, and, therefore, entitled to depreciation at 30 per cent.?" Admit. On the request of learned counsel for the parties, we have taken this matter for final disposal. This appeal under section 260A of the Income-tax Act, 1961, is directed against the order dated October 26, 1998, passed by the Income-tax Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avy construction, accordingly, in his opinion, the assessee could not claim depreciation at 30 per cent. The Commissioner of Income-tax (Appeals) found that the drilling operations had resulted in the production of underground water for use on the surface of the ground and in these circumstances it must be held that the assessee is an industrial undertaking for the purpose of production of undergr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction. It is submitted that the basic condition for allowing the claim of investment allowance is manufacturing, production or construction of article or thing. It is further submitted that the assessee is a contractor for drilling tubewells and installing handpumps for PHED and the assessee does not fulfil the basic condition provided under section 32A of the Act, i.e., manufacturing, produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
