TMI Blog2001 (8) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... . It also claims to undertake the work of construction of roads. For the assessment year 1987-88, the assessee claimed investment allowance of Rs.1,62,163 in respect of the machinery costing Rs.6,48,651 under section 32A of the Act. The Assessing Officer negatived the claim of the assessee and declined to grant the relief so claimed. The assessee then filed appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeal filed by the assesee and held that looking to the business of assessee, they are entitled to claim the investment allowance on the amount invested in machinery. The Revenue, therefore, filed an appeal to the Tribunal against the order of the Commissioner of Income-tax (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 32A of the Act on an investment that they have made on machinery. In reply learned counsel for the assessee made an attempt to distinguish the case of N. C. Budharaja [1993] 204 ITR 412 (SC). According to learned counsel in view of the facts found in this case, the ratio of N. C. Budharaja's case [1993] 204 ITR 412 (SC), has no application to the facts of this case. Learned counsel urged that in the present case the assessee is found to be engaged in the construction of roads which involves manufacturing activities and hence attracts the provisions of section 32A ibid. Learned counsel also relied on two decisions reported in CIT v. Bakhtawar Singh [1997] 228 ITR 614 (MP) and CIT v. Asian Techs Ltd. [1997] 226 ITR 672 (Ker). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l articles; it is composed of stones, concrete, cement, steel and other manufactured articles like gates, sluices, etc. But to say that the end-product, the dam, is an article is to be unfaithful to the normal connotation of the word. A dam is constructed; it is not manufactured or produced. The expressions 'manufacture' and 'produce' are normally associated with movables-articles and goods, big and small-but they are never employed to denote the construction activity of the nature involved in the construction of a dam or for that matter a bridge, a road or a building. The decisions of the Bombay High Court in CIT v. N. U. C. Private Ltd. [1980] 126 ITR 377 and in CIT v. Shah Construction Co. Ltd. [1983] 142 ITR 696, relied upon by Sri Murt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion whether to call for a question for answer on the merits or not. In the opinion of their Lordships the question of law did arise and, therefore, while allowing the application made by the Revenue under section 256(2) ibid, the High Court directed the Tribunal to refer the question to the High Court for answer on the merits. This decision cannot be cited for the proposition advanced by learned counsel for the assessee as it did not decide any issue much less the issue on the merits and that too in favour of the assessee. Indeed, in this decision, the only question was whether a question of law arose out of the Tribunal's order or not. This decision, therefore, does not help the assessee at all. Similar is the case relied on by learned c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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