1981 (4) TMI 151

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e granted under s. 32A by his order made under s. 263 of the IT Act, 1961. 2. The assessee is a Registered Firm having a ginning factory. In computing the total income for the assessee. 1977-78 corresponding to the previous year ended 31st March, 1977 the assessee had claimed investment allowance under s. 32A in respect of a sum of Rs. 1.02.426 invested in Power Generator and Electric motor for....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to produce any particular article listed in the Schedule to the Act. It was submitted that the only question was whether the ginning of corron amounted to manufacture and in view of the decision of the Supreme Court in the case of Chandlal Kishorilial AIR 1969 SC 1073, ginning involved the transformation of raw material into a different product and must be accepted as manufacture. On the other ha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ished product. On this question we have the authority of the Supreme Court in the case of Chandlal Kishorilal where it was held that to while cotton in its unsigned state contains cotton seeds, by the ginning and separating the seeds, it will not be correct to say that it remains as cotton and that two distinct commercial goods are produced in the process. It has also been held in the case of Gird....