TMI Blog2000 (8) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Tribunal was right in law in holding that expenditure due to exchange rate difference was an expenditure of capital nature? (for the assessment years 1976-77 and 1977-78). 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that export insurance and freight, export packing charges and export stitching charges were not eligible for weighted deduction under section 35B of the Act? (for the assessment year 1978-79). 4. Whether, on the facts and in the circumstances of the case, the Tribunal was right in rejecting the claim of the assessee for investment allowance under section 32A with reference to electrical installation, electrification in workshop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y us is question No. 4 which is as under: "4. Whether, on the facts and in the circumstances of the case, the Tribunal was right in rejecting the claim of the assessees for investment allowance under section 32A with reference to electrical installation, electrification in workshop and extension of cable trench? (for the assessment year 1978-79)." At the outset, learned counsel did not press his claim for investment allowance under section 32A for cable trench as the amount involved is very small. On behalf of the assessee, however, the claim for investment allowance under section 32A with reference to electrical installation and electrification in workshop has been pressed. As is pointed out by learned counsel for the assessee in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11,655 2. Electric calculating machine for the factory 5,625 3. Typewriter in the factory 3,903 4. Internal telephone installed in the factory 1,618 5. Electric installation in loom shed 15,492 6. Electrification in mechanical workshop 30,843 7. Extension of cable trench 2,416 The authorities below rejected the claim of the assessee on the ground that the investment allowance was admissible on such items of machinery which are purchased by the assessee and used in the production or manufacture of articles or things. Since the aforesaid items (lid not fulfil the above test the claim of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess did not stand to reason or practicality. One may or may not conceive of certain parts or stages of the process as principal process and the rest as accessory processes but that makes no difference to the fact that all processes taken together constitute an indivisible integral process. As a matter of fact, all machinery and equipment that is necessary to make the assessee's manufacturing unit in a state of operational integration pertain to its manufacturing process, because there could not be any manufacture unless this operational integration was achieved after installation of the plant and the plant goes operational. Therefore, any machinery or plant having a link, however minor, in the total process of the operational integration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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