TMI Blog2004 (10) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... thing - investment allowance u/s 32A can be claimed by the assessee if he is running an industrial undertaking engaged in generation or distribution of electricity or any other form of power or involving manufacturing or producing articles or things - The Tribunal, thus, clearly fell in error while holding that the generator which was being used by the assessee was an integral part of the machinery for running a cinema and was entitled for investment allowance. - - - - - Dated:- 7-10-2004 - Judge(s) : G. S. SINGHVI., AJAY KUMAR MITTAL. JUDGMENT The judgment of the court was delivered by Ajay Kumar Mittal J.- This is a reference under section 256(1) of the Income-tax Act, 1961 (for short, "the Act"), at the instance of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on account of investment allowance under section 32A of the Act. He submitted that the apex court in CIT v. Venkateswara Hatcheries (P) Ltd. [1999] 237 ITR 174, while dealing with the aforesaid provision, has held that an assessee in order to entitle him to deduction of investment allowance under section 32A of the Act, should be carrying on the business of manufacture or production of article or thing and unless these conditions are fulfilled, the assessee shall not be held entitled for investment allowance within the meaning of section 32A of the Act. Learned counsel then submitted that the Assessing Officer has recorded a finding that the assessee derives income from exhibition of motion pictures and, therefore, it does not fall withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of business or profession' of any one previous year. (2) The ship or aircraft Or machinery or plant referred to in sub-section (1) shall be the following namely:- (a) a new ship or new aircraft acquired after the 31st day of March, 1976, by an assessee engaged in the business of operation of ships or aircraft; (b) any new machinery or plant installed after the 31st day of March, 1976,- (i) for the purposes of business of generation or distribution of electricity or any other form of power; or (ii) in a small-scale industrial undertaking for the purposes of business of manufacture or production of any article or thing; or (iii) in any other industrial undertaking for the purposes of business of construction, manufacture or prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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