COMMISSIONER OF INCOME TAX Vs. FORT GLOSTER INDUSTRIES LTD
LAWS(CAL)-1994-4-18
HIGH COURT OF CALCUTTA
Decided on April 26,1994

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
FORT GLOSTER INDUSTRIES LTD. Respondents





Cited Judgements :-

National Engineering Industries LTD VS. Commissioner of Income tax [LAWS(CAL)-1998-9-45] [REFERRED TO]
T.R.F. LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(JHAR)-2006-7-25] [REFERRED TO(CAL) .]


JUDGEMENT

Suhas Chandra Sen, J. - (1.)Tribunal has referred the following question of law to this court under Section 256(1) of the Income-tax Act, 1961 :
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in not upholding the finding of the Commissioner of Income-tax (Appeals) to the effect that the computer installed in the factory premises does not form a part of the manufacturing unit intimately connected with the production of manufacturing of any article or thing and as such investment allowance under Section 32A of the Income-tax Act of Rs. 35,814 as claimed by the assessed was not allowable ?"

(2.)The assessment year involved is 1984 for which the accounting year ended on March 31, 1984. About the use of the computer in question, the Tribunal has found the following facts : In this case, there is no dispute that the computer has been installed in the special cabin constructed within the factory premises. The computer was used for processing raw materials, data, straw data, wages and salaries payments, etc., and also for monitoring the details of production. In such a case, if we apply the functional test on the fact of the computer installed here, it is in the line of the manufacturing process in the cable division of the assessee.
(3.)It has been contended on behalf of, the Revenue that this computer was not used for manufacture but the Tribunal's finding is that the computer is used for processing raw materials, data, straw data, and for monitoring the details of production. If that be so, we fail to see how it is not a part of the business of manufacture of the cable division of the assessee. The Tribunal has found that the computer has been installed in a special cabin constructed within the factory premises itself.


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