TMI Blog1997 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... plant and machinery used in manufacturing the cigarette filter rod of the Eleventh Schedule?" The reference pertains to the assessment year 1982-83. The brief facts giving rise to this reference can be narrated as follows : The assessee-company manufactured cigarette filter rods. It claimed investment allowance under section 32A of the Act of Rs. 46,071 on the plant and machinery worth Rs. 1,84,286. Rejecting the claim of the assessee for investment allowance with respect to a pedestal fan costing Rs. 1,650, and a deep chilling machine costing Rs. 8,150, the Income-tax Officer allowed investment allowance on the balance cost of plant and machinery amounting to Rs. 1,74,486. In the revision proceedings, the Commissioner of Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The only issue before this court is to decide whether the Income-tax Appellate Tribunal was justified in coming to the conclusion that manufacture of cigarette filter rod did not fall within entry No. 27 of the Eleventh Schedule. We have heard Mr. Khatri, learned counsel for the Revenue at length. None appeared for the assessee. However, we have gone through the statement of the case. We have perused the assessment order dated April 7, 1992, (sic) the order of the Commissioner of Income-tax and the order of the Income-tax Appellate Tribunal dated July 25, 1991, and after carefully considering the same, we do not find any reason to interfere with the order of the Income-tax Appellate Tribunal, for reasons given below. Section 32A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured by the assessee are used in the cigarette as a sucker (emphasis supplied by us). It is, therefore, crystal clear that these two things are entirely different, and there is not an iota of semblance between these two items. Under these circumstances, and for the abovementioned reasons, we do not find any infirmity in the order passed by the Income-tax Appellate Tribunal. We, therefore, hold that the Tribunal was right in allowing investment allowance under section 32A of the Act in respect of plant and machinery used in manufacturing cigarette filter rod of the Eleventh Schedule. Accordingly, we answer the question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. Reference disposed of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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