1987 (5) TMI 86

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..... the other. Such movement of earth is in the project site itself. For this purpose, the assessee had purchased tippers. The tippers are hydraulically operated. The earth, mud, etc., which are loaded in the tippers are ejected by tipping the container part. Thus, unloading is effected without human agency. 3. For the assessment year 1979-80, the Income-tax Officer was of opinion that the assessee was not entitled to investment allowance at all because they were not manufacturing or producing any article or goods. This matter had come up to the Tribunal which held that the assessee is entitled to investment allowance. The Tribunal remitted the matter back to the ITO to compute and quantify the investment allowance. While doing so, the Income .....

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..... sport Vehicles. They had stated that the matter should be decided by looking into how the rules consider the dumpers for the purpose of depreciation. The Calcutta High Court had pointed out that dumpers are treated differently from lorries. He also relied on a circular letter issued by the Central Board of Direct Taxes regarding development rebate on Forklift truck. This circular recognised that if the truck is put to use within the factory then it cannot be treated as Road Transport Vehicle. 6. We have considered the submissions. Section 32A allows for a deduction of investment allowance in respect of assets owned by the assessee and which is used in the business. The proviso to that section states that no deduction shall be allowed in re .....

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..... ts in the above paragraphs. 7. We have to apply these three tests in finding out whether tippers would be Road Transport Vehicles. The first test is whether it is capable of giving the desired service. The tipper being specially constructed for unloading earth, sand etc. it is not designed for the purpose of a vehicle moving men and material along with road. Its main purpose is only to unload the materials mechanically. The second test which is the primary use also shows that it is not used as Road Transport Vehicle. The third test also shows that in the commercial world tippers are not understood as Road Transport Vehicles. Thus, we come to a finding on the basis of the tests propounded by the Gujarat High Court in a similar case that the .....

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