TMI Blog1983 (7) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... se, referring the following two questions as arising out of the order of the Tribunal for the opinion of this court, namely : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee is entitled to the investment allowance of Rs. 25,607 on the plant and machinery used for the purpose of ginning cotton ? 2. Whether, on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under s. 32A. The claim was based on the view that the ginning of cotton amounted to manufacture as contemplated by s. 32A of the Act. Subsequently, on the basis of an audit note pointing out that investment allowance could not be given in regard to the ginning factory, the Commissioner initiated revisional proceedings under s. 263 as the grant of investment allowance was considered to be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as filed this reference application, seeking a reference, on the above two questions. Thus, on the facts stated above, the only question that arises here is, whether the ginning of cotton amounts to manufacture as contemplated by s. 32A of the Act. The Supreme Court has, in the case referred to above, specifically held that ginning process is a manufacturing process, that by a manufacturing proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture though not a production. We are, therefore, of the view that the decision of the Tribunal in this case is in accord with the view taken by the Supreme Court that ginning amounts to a manufacturing process. Therefore, the assessee is entitled to the relief under s. 32A. We do not think there is any warrant for referring the questions sought to be referred. The petition is, therefore, dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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