COMMISSIONER OF INCOME TAX Vs. ANIL KUMAR BISHNOI
LAWS(DLH)-2007-10-205
HIGH COURT OF DELHI
Decided on October 12,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
ANIL KUMAR BISHNOI,AJIT KUMAR BISHNOI,S.L.B. EXPORTS Respondents

JUDGEMENT

S.Muralidhar, J. - (1.) These are 12 references relating to various Assessment Years raising similar questions. Since the parties are agreed that the lead matter is ITR No. 75 of 1986 and that a decision in that reference would govern the rest of the references, we propose to deal with ITR No. 75 of 1986 in detail.
(2.) Relevant for the Assessment Year 1979-80, the following question of law has been referred to us by the Income Tax Appellate Tribunal, Bench A, New Delhi ('Tribunal') under Section 256 (1) of the Income Tax Act, 1961 (Act): "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the Assessee was entitled to investment allowance u/s 32A of the I.T. Act" "
(3.) The Assessee, who started a business in the name and style of M/s. Complete Dewatering Systems with effect from July 1, 1977, claimed that he is engaged in two distinct activities, for each of which he claimed investment allowance under Section 32A of the Act. The first activity was the running of an industrial undertaking engaged in the business of construction. The assessee claimed to have participated in the business of construction by dewatering the land i.e. pumping out water from the ground water table so that the work of excavation of the land thereunder could take place in completely dry conditions. According to the assessee dewatering is integral to the construction activity and for this purposes he used his own equipments on the site. The second activity was the manufacture of the dewatering equipment itself. The assessee claimed that he purchased different component parts and assembled them at the site on which the dewatering was to take place. Unless so assembled the dewatering equipment could not be used.;


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