2006 (11) TMI 110

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....acturing of wireless sets does not fall in item No. 22 (read with its Explanation) of the Eleventh Schedule to the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing investment allowance under section 32A of the Income-tax Act, 1961, to the assessee-company engaged in the manufacturing of wireless sets ?" 2 The assessee claimed investment allowance of Rs. 4,63,620 which was negatived on the ground that the assessee was engaged in the manufacture of wireless sets, which fell under item No. 22 of the Eleventh Schedule, which contained a negative list of items on which investment allowance was not admissible under section 32A of the Income-tax Act, 196....

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....rmining the meaning of the expression 'office appliance' in section 32A, second provisos clause (b), it is also necessary to have regard to the contents of clause (a) under the same proviso which refers to 'any machinery or plant installed in any office premises or any residential accommodation, including any accommodation in the nature of a guest house' ; clause (a) excludes all machinery and plant installed in any office premises. The exclusion is not confined to office appliances, but would take into account all machinery and plant which, had they been installed elsewhere would have qualified for the investment allowance. Office appliance as the term is used in clause (b) of the second proviso must be construed strictly and limited to....