2004 (10) TMI 45

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....stances of the case, the learned Income-tax Appellate Tribunal was right in law in allowing the investment allowance to the generator installed for business other than those specified in section 32A?" The facts relevant for the decision of the aforesaid question may be noticed thus: The assessee purchased generator for running of its theatre at the cost of Rs. 1,06,700 and had claimed investment allowance under section 32A of the Act at the rate of 25 per cent. of the cost of the generator. The said claim of the assessee was disallowed by the Assessing Officer on the ground that it is neither engaged in the business of generation or distribution of electricity or any other form of power nor was carrying on the business of manufacture ....

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....chinery or plant specified in sub-section (2) which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section, be allowed a deduction, in respect of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed or, if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, of a sum by way of investment allowance equal to twenty-five per cent. of the actual cost of the ship, aircraft, machinery or plant to the assessee: Provided that no deduction shall be allowed under this section in respect of- ....

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....see therein was engaged in the business of hatchery and the point before the apex court was whether the assessee comes within the meaning of the expression "industrial undertaking manufacturing or producing an article or thing" occurring in section 32A(2) of the Act. The apex court held that the business of hatchery cannot be termed an industrial undertaking producing article or thing and thus, the assessee was held not entitled to the benefit of section 32A of the Act. The assessee, in the present case, is engaged in the business of exhibition of motion pictures and the generator has been installed by it for running of the cinema hall. By no stretch of imagination, can it be said that the assessee is running an industrial undertaking wh....