1995 (2) TMI 118

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....ssee ought to have been allowed an opportunity to create requisite amount of investment allowance reserve to claim investment allowance in respect of cost of plant acquired and used for purposes of business. The latter ground is not arising out of the order of the CIT(A) and was not argued during the course of hearing of the appeal. It is, therefore, not considered. We would only consider the assessee's claim under first proviso to s. 32(1)(ii) of the IT Act. 2. The facts of the case briefly stated are that the appellant-company, during the previous year, acquired and used for its business purposes of construction, wooden shuttering sheets plants and supporting material. The cost of the individual item of above material, being less than ....

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....o be used in a group and single use of a unit was not possible. He submitted that even if a single plank or sheet or two planks and sheets can be used in construction work depending upon the area to be constructed. He accordingly submitted that the conclusion of the Assessing Officer relating to functional use of sheets and planks was erroneous. Shri Bajpai further distinguished the decision of Hon'ble Madras High Court in the case of Mysore Dasaprakash and submitted that the said decision was not applicable to the facts of the case. In the said decision, their Lordships were concerned with electricity supply system which consisted of rooms constructed, electricity switch boards distribution boards, verandah lights, etc., all these items we....

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.... intended to be covered. But from the above, it cannot be said that for construction any particular minimum number of sheets or scaffoldings were necessary. Thus individual item of shuttering and scaffoldings was plant and as the cost of individual item was less than Rs. 750 (now the limit raised to Rs. 5000), the assessee was entitled to depreciation at 100 per cent. The facts as already noted, being identical, we entirely agree with the reasoning given by the Bench and hold that each shuttering and plank can be put to separate use. The number of items to be used depend upon the size of construction to be carried. It is, therefore, not possible to hold that all shuttering and plank would together constitute a single plant or machinery. Eac....