Domestic electrical appliances exclusion did not cover fluorescent tubes, preserving investment allowance entitlement under the Income-tax Act.

Fluorescent tubes were held not to be domestic electrical appliances within item No. 12 of the XIth Schedule to the Income-tax Act, because that entry covers appliances normally used in households and similar settings such as hostels, restaurants, hotels, offices, educational institutions and hospitals. The court construed the exclusion narrowly and found that fluorescent tubes are articles of general use, not confined to domestic or routine household use. As they did not fall within the excluded category, the assessee remained entitled to investment allowance under section 32A.

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Issues: Whether fluorescent tubes manufactured by the assessee were domestic electrical appliances falling within item No. 12 of the XIth Schedule to the Income-tax Act, 1961, so as to deny investment allowance under section 32A.

Analysis: Item No. 12 of the XIth Schedule covers domestic electric appliances, namely appliances normally used in the household and similar appliances used in places such as hostels, restaurants, hotels, offices, educational institutions and hospitals. Fluorescent tubes are articles of general use and are not confined to domestic use. They are not appliances ordinarily employed for the routine tasks associated with household or similar institutional use. On that construction, the goods manufactured by the assessee did not fall within the excluded category.

Conclusion: The fluorescent tubes were not domestic electrical appliances, and the assessee was entitled to investment allowance under section 32A.

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