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2010 (7) TMI 782 - HC - Income TaxWhether Tribunal was right in law in allowing depreciation on foreign cars in view of the provisions of section 32(1)(ii) – Held that:- purpose of exclusion by way of proviso of claims for depreciation of imported cars incorporated by the second proviso to Section 32 (1)(ii) of the Act was not to deny depreciation on foreign cars used in foreign countries for business abroad. It cannot be denied that cars used for business abroad at a foreign site is eligible for claiming depreciation, but for the proviso. There is no justification to read the proviso as excluding the said benefit which is otherwise a legitimate claim, claim of the assessee for depreciation on foreign cars used at foreign sites for its business is clearly admissible. decision against the revenue and in favour of the assessee Whether Tribunal was right in law holding the construction business as industrial undertaking and allowing deductions u/s 80J & 80-HH when the different courts have held contrary to that – Held that:- activity of the assessee, as already mentioned above, is construction and fabrication of mechanized houses, which cannot be equated to manufacture and production of articles or things, questions referred have to be answered in favour of the revenue and against the assessee. The assessee was not entitled to deduction under Sections 80J and 80HH of the Act
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