Investment allowance on mining dumpers accepted where their ordinary use was in mining operations, not road transport.

Dumpers owned by the assessee and used in mining operations under contract with the mine owner were treated as being used for mining purposes, not as road transport vehicles merely carrying goods on roads. Applying the ordinary-use test for the vehicle, the court held that such deployment fell within the relevant allowance provision. Investment allowance was therefore allowable on the dumpers, and the issue was answered in favour of the assessee and against the Revenue.

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Issues: Whether dumpers used in mining operations on contract are entitled to investment allowance under section 32A of the Income-tax Act, 1961.

Analysis: The dumpers were owned by the assessee and were used during the relevant assessment year in mining operations under a contract with the mine owner. Their use was for mining purposes and not merely for carrying goods on roads. Applying the Board's own test that the decisive factor is the ordinary use of the vehicle, dumpers so deployed were not to be treated as road transport vehicles.

Conclusion: Investment allowance was allowable on the dumpers, and the question referred was answered in favour of the assessee and against the Revenue.

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