2005 (3) TMI 37

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....d sewerage network constituted plant and machinery and was entitled to investment allowance under section 32A of the Income-tax Act on its cost of Rs. 63,54,058? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that tractor-trailers used for lifting and carrying equipment and materials constituted plant and machinery and were entitled to investment allowance under section 32A of the Income-tax Act?" The respondent assessee-company is a public limited company carrying on business of manufacture of chemical fertilizers. The assessment year is 1983-84 and the relevant accounting period is the calendar year 1982. The assessee-company installed drainage and sewerage network ....

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....said finding. The Tribunal, for the reasons stated in para. No. 9 of its order, held that huge quantities of raw materials, finished products and equipment were required to be handled and transported within the factory premises and for such handling and transportation, the tractor-trailers were used entitling the assessee to claim investment allowance. The matter has been heard on 9th and 10th March, 2005, but the learned advocate for the applicant is absent. However, the learned advocate for the respondent-assessee Shri Manish J. Shah, is present and has made his submissions in support of the order made by the Tribunal. In relation to question No. 1, the issue stands concluded by the ratio of the decision rendered by this court in....

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....uram [1999] 239 ITR 497 (Gauhati). It is apparent that the Tribunal has found that the tractor-trailers were used to transport huge quantities of raw materials, finished products and equipment within the factory premises. In the light of this finding of fact, it is not possible to state that the tractor-trailers would fall within the meaning of road transport vehicles. Road transport vehicles would, in common parlance, mean vehicles which are used for transportation of goods or passengers by road. In the normal circumstances, a tractor-trailer is not used for transportation of people at least, though in given set of circumstances it may be involved in transportation of goods. However, what is material is as to where such transportation t....