Investment allowance denied for canal construction under Income-tax Act

The High Court of Madras held that the construction of a canal does not qualify for investment allowance under the Income-tax Act, 1961, as it does not constitute manufacturing or production of an article.

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The High Court of Madras ruled in favor of the Revenue, stating that the construction of a canal does not qualify as manufacturing or production of an article for investment allowance under the Income-tax Act, 1961. The judgment was delivered by Judge MRS. A. SUBBULAKSHMY J.

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