Civil construction not treated as an industrial undertaking, so investment allowance relief was unavailable under section 32A.

Civil construction activity does not, by itself, amount to manufacturing or an industrial undertaking for purposes of investment allowance relief under section 32A of the Income-tax Act, 1961. Where the assessee's work consisted of construction of industrial foundations, public buildings and housing complexes, that activity was treated as outside the scope of the statutory expression "industrial undertaking". Relief under section 32A was therefore unavailable on that basis, and the reference was answered in favour of the Revenue to that extent.

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Issues: Whether civil construction activity undertaken by the assessee constituted an industrial undertaking entitled to relief under section 32A of the Income-tax Act, 1961.

Analysis: The assessee was engaged in construction of industrial foundations, public buildings and housing complexes. The controlling principle applied was that civil construction, by itself, does not amount to manufacturing activity and therefore does not fall within the scope of an industrial undertaking for the purpose of investment allowance relief.

Conclusion: Civil construction activity was held not to constitute an industrial undertaking, and the assessee was not entitled to relief under section 32A on that basis; the reference was answered in favour of the Revenue to that extent.

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