Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 322 - HC - Income TaxInvestment allowance u/s 32A / Deduction u/s 80IA - Whether the assessee can be said to be an industrial undertaking‖ engaged in the business of manufacturing or production of an article or a things for the purpose of section 32A and section 80-IA/80-IB of the Income Tax Act, 1961 - whether the production of log by the assessee, while providing wireline logging services to its clients, amounts to manufacturing or production of an article or thing so as to place the assessee at per an industrial undertaking wherefrom it can be entitled to claim various tax incentives as available to these entities under the Act. - Held that:- the analogy has some substance - Decided in favor of assessee. Regarding 100% depreciation - Held that:- The artificial distinction regarding the mobile nature of the assessee‟s equipments, which has been created and relied upon by the department, is of no use because even if such a distinction exists it would neither alter the nature of the assessee‟s equipments nor the character of its user. - the assessee's wireline logging and perforation equipments are eligible for a higher depreciation @ 100% under cl. (ii) of s. 32(1) of the Act, r/w item III(3)(ix)(b) of the schedule of rates of depreciation in Appendix I to the Income Tax Rules, 1962.
|