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of <h1>Assessee qualifies as industrial company under Finance Act for investment allowance</h1> The Tribunal determined that the assessee qualified as an industrial company under section 2(7)(c) of the Finance Act, 1981, based on the use of computers ... Industrial Company, Investment Allowance Issues: 1. Determination of whether the assessee qualifies as an industrial company under section 2(7)(c) of the Finance Act, 1981. 2. Decision on whether the assessee is eligible for investment allowance for a generator installation.Issue 1 - Industrial Company Qualification: The case involved the assessment year 1981-82, where the assessee provided technical and industrial consultancy using computers and electronic data processing. The Commissioner of Income-tax (Appeals) confirmed that the services were mainly computer-based, involving processing data through computers and generating outputs. The Tribunal upheld this decision, stating that the activity, although intellectual, involved the use of machines like computers, making it an industrial activity. The Tribunal referred to a Karnataka High Court decision defining 'industrial company' as including those engaged in processing goods, where processing involves a change in the commodity. Relying on this precedent, the Tribunal affirmed that the assessee qualified as an industrial company under section 2(7)(c) of the Finance Act, 1981.Issue 2 - Investment Allowance Eligibility: Given the determination that the assessee was an industrial company, the Tribunal concluded that the assessee was entitled to investment allowance for the generator installation. Since the business activity was deemed industrial in nature, the investment allowance for the generator was approved. Consequently, both questions of law referred to the court were answered affirmatively and in favor of the assessee. No costs were awarded in this matter.Separate Judgment by SUHAS CHANDRA SEN J.: Justice SUHAS CHANDRA SEN concurred with the decision and agreed with the findings of the Tribunal.
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