https://www.taxtmi.com/caselaws?id=181615 The Tribunal upheld the denial of investment allowance to an assessee-company engaged in processing grey cloth, ruling that the dyeing or printing activity did not qualify as manufacturing under the Income-tax Act. Despite the CIT (Appeals) decision in favor of the assessee, citing a circular by the Central Board of Direct Taxes, the Tribunal emphasized that judicial decisions supersede circulars. The Tribunal reversed the CIT (Appeals) decision and disallowed the investment allowance claim, reinstating the Assessing Officer's decision. The case focused on interpreting 'manufacturing activity' for investment allowance eligibility, considering conflicting legal precedents and the weight of circulars in tax law interpretation. en-us Fri, 17 Jan 1997 00:00:00 +0530 Wed, 20 Apr 2016 17:48:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181615 The Tribunal upheld the denial of investment allowance to an assessee-company engaged in processing grey cloth, ruling that the dyeing or printing activity did not qualify as manufacturing under the Income-tax Act. Despite the CIT (Appeals) decision in favor of the assessee, citing a circular by the Central Board of Direct Taxes, the Tribunal emphasized that judicial decisions supersede circulars. The Tribunal reversed the CIT (Appeals) decision and disallowed the investment allowance claim, reinstating the Assessing Officer's decision. The case focused on interpreting 'manufacturing activity' for investment allowance eligibility, considering conflicting legal precedents and the weight of circulars in tax law interpretation. Case-Laws Income Tax Fri, 17 Jan 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181615