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2018 (6) TMI 1470 - HC - Income TaxGrant of investment allowance on weighing machines, computers and electrical appliances, etc. - Whether blending of tea or coffee does not amount to manufacture or production of an article or thing? - provisions of section 32A applicability - Held that:- Tribunal had no jurisdiction to reopen the closed issue that blending of tea was equivalent to manufacture or production of an article, which was finally decided by it in the affirmative in favour of the assessee by its order dated 30th November, 1992 in the previous two assessment years 1981-82 and 1982-83 The wording of Section 32(A) (2) (b) (iii) is also very important. It refers to any new machinery or plant installed “for the purpose of” manufacture or production of any article or thing. The phrase “for the purpose of” has to be given some meaning. It does not always refer to an article or thing used directly in manufacture, as is the mistaken view. It refers to the use of the plant or machinery for the purpose of manufacture or production. Now “for the purpose of” has to be given a wide and liberal interpretation so as to include every article used in connection with manufacture or production not being stock-in-trade, whether employed directly or indirectly. On the mistaken notion that in order to qualify as plant a machinery had to be directly used in the manufacture of an article or thing, the tribunal has upheld the order of the authorities below refusing grant of investment allowance on weighing machines, computers and electrical appliances, etc. In any opinion they are eligible for this allowance. - decided in favour of assessee
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