Investment allowance ineligibility for hotels affirmed; hotel machinery claims to be disallowed and remedial assessment action advised. Investment allowance under section 32A is not available for new plant and machinery installed in the business of a hotel, including restaurant units, because the business of running a hotel does not constitute an industrial undertaking engaged in manufacture or production for the purposes of that provision. Claims by hotels should be disallowed in pending and future assessments and remedial action considered in completed assessments within permissible procedural limits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Investment allowance ineligibility for hotels affirmed; hotel machinery claims to be disallowed and remedial assessment action advised.
Investment allowance under section 32A is not available for new plant and machinery installed in the business of a hotel, including restaurant units, because the business of running a hotel does not constitute an industrial undertaking engaged in manufacture or production for the purposes of that provision. Claims by hotels should be disallowed in pending and future assessments and remedial action considered in completed assessments within permissible procedural limits.
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