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2015 (6) TMI 942 - AT - Income TaxDisallowance of Additional depreciation - business of the assessee involves carrying out piling works - business of manufacture or production of an article or thing or not - construction contracts - Held that:- It is in the common knowledge of everyone that, in civil construction contracts, "concrete slabs" are produced separately and they are then fitted at the required places. Does it mean that the civil contractor is manufacturing or producing the "Concrete slabs"? In our view the production of concrete slabs either separately or on the structure itself by the civil contractor forms part of construction activity only, since they are merely two different ways of construction. The same analogy, in our view, would apply to the present case also. In our view, it would not make any difference when the piles are constructed inside the bore at project site itself or the prefabricated piles are fitted into the bore, by producing the piles at a different place. Ultimately the assessee is executing his contract work of piling and the new machinery would enable him to complete the work fast, since the assessee could carry out boring work separately and the prefabricated piles could be prepared prior to boring work also. As observed earlier, it is not the case of the assessee that it is producing the prefabricated piles and selling them to outsiders. Hence, we are of the view that the assessee cannot be considered to be an assessee engaged in the business of manufacture or production of an article or thing. - Decided against assessee.
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