TMI Blog1999 (6) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture or production of an article or thing, and is entitled to investment allowance under section 32A of the Income-tax Act, 1961?" The facts in brief are as follows : The assessee is a qualified doctor with P. G. degree in radio therapy and is running a diagnostic centre. It is registered as a small-scale industrial undertaking. He claimed investment allowance on the same under section 32A of the Income-tax Act in respect of the following machinery: 1. X-ray plant. 2. Modulab system which is a computerised bio-chemistry analyser for bio-chemical analysis of blood, serum, etc. 3. Portable X-ray unit, 4. Photometer used for the analysis of electrolytes like sodium, potassium, etc., in blood, 5. Microscope used for blood c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is a portable machine used to analyse and determine urea and sugar levels in an emergency. The Income-tax Officer declined to grant investment allowance on the ground that the assessee is not engaged in the manufacture or production of any article or thing but was only rendering certain services. The appellate authority upheld the claim of the assessee. On appeal, the Tribunal agreed with the assessee. At the request of the Revenue, the question set out in the earlier paragraph was referred for the opinion of this court. The Tribunal held that the assessee is entitled for investment allowance under section 32A of the Income-tax Act, in respect of the equipment used in the laboratory for testing blood, serum, etc., and also in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder : "(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 production of any article or thing, not being an article or thing specified in the list in the Eleventh Schedule. . ." From a reading of sub-clause (2)(ii) it is clear that any new machinery installed in a small-scale industrial undertaking for the purposes of business of manufacture or production of any art ..... X X X X Extracts X X X X X X X X Extracts X X X X
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