TMI Blog1992 (2) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... erhead cables and air-conditioning machines were part and parcel of the plant and machinery used for manufacturing tissue paper and in that view in allowing investment allowance on the said items of assets ?" Shortly stated, the facts relating to the question are that the assessee in relation to assessment year 1978-79 claimed investment allowance on motors, electrical installations and underground cables, overhead cables, air-conditioning machines, tubewells and weighing machines to the correct value of Rs. 1,23,62,683. The Assessing Officer did not allow the investment allowance on the items on the ground that the electrical machines are in the nature of additional equipment and accessories which were not used in the actual manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing tissue paper and the articles are part of the plant and machinery and, therefore, the Commissioner of Income-tax (Appeals) was justified in allowing investment allowance. He further indicated that the tubewell of the assessee was not an ordinary one. It was a deep-sunk tubewell. The water is essential for the manufacture of tissue paper and, therefore, the tubewell also can be considered as plant. He also indicated that the weighing machine is necessary for production and, therefore, there could not be any objection for the investment allowance to the weighing machine. The Tribunal held that the assessee was manufacturing tissue paper. Most of the items enumerated above were essential parts of the machines which were required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air-conditioning machine. Learned counsel for the Revenue, however, urged that the basic premise that the items in question formed part and parcel of the plant and machinery of the assessee for the purpose of production of paper remains to be established. It was also stressed that air-conditioning machines were installed in the office and were not, therefore, eligible for the allowance. The Revenue also questioned the factum of the air-conditioning services being wholly used for the purpose of business of the assessee. Dr. Pal, learned counsel for the assessee, however, opposed this line of argument of the Revenue. He pointed out that there could not be dispute on the facts regarding the use of the items for the purpose of business. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achinery and plant for the purpose of depreciation. For this purpose, he drew our attention to the depreciation charge in Appendix I to the Income-tax Rules, setting out the Table of rates at which the depreciation is admissible on plant and machinery. Part III deals with machinery and plant. Part III(ii)(A)(2) refers to overhead cables and wires, and Part (III)(ii)(B)(2) refers to air-conditioning machinery including room air-conditioners. Below the illustration given at page 553 of Part 11 of Palkhivala's Law and Practice of Income Tax, Seventh edition, the rules provide that no extra shift allowance is to be allowed in respect of machinery set out in items Nos. (1) to (10). Item No. (10) refers to weighing machines. Therefore, in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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