TaxTMI 
TaxTMI 
2001 (7) TMI 12
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.... the Income-tax Appellate Tribunal was justified in holding that the assessee is entitled to investment allowance under section 32A on data processing machine for the assessment years 1981-82 and 1982-83?" The opposite party is a small scale industrial unit as per the certificate granted by the Director of Industries, Orissa. It manufactures coal briquettes and lime as well as engaged in computer business. For the assessment years 1981-82 and 1982-83 investment allowance claimed by the opposite party under section 32A of the Act on data processing machine was allowed by the Income-tax Officer in the assessment order dated January 17, 1984, and January 23, 1984, respectively. The Commissioner of Income-tax by invoking the power vested in ....
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.... working of investment allowance on data processing machine. He has also placed that on record. We have taken the statement of working of investment allowance on record. We are not required to compute the investment allowance and it is the duty of the Income-tax Officer. The investment allowance is allowable and computation of the same on data processing machine requires to be made by the Income-tax Officer. In the result, the assessee succeeds partly. The Income-tax Officer is directed to make computation of investment allowance after allowing an opportunity of being heard to the assessee. The appeal filed by the opposite party for the assessment year 1982-83 was also partly allowed by the Tribunal in its order dated April 12, 1989, for....
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....respect of the previous year in which...the machinery...was installed or, if the...machinery...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...machinery...to the assessee." Section 32A(2) reads as follows: "...machinery...referred to in sub-section (1) shall be the following, namely:-... (b) any new machinery or plant installed after the 31st day of March, 1976-... (ii) in a small-scale industrial undertaking for the purposes of business of manufacture or production of any article or thing; or... The opposite party is a small scale industrial unit. In order to get investment ....
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....ce the change may be. This distinction is well brought out in a passage thus quoted in permanent edition of Words and Phrases, Vol. 26, from an American judgment. The passage runs thus: 'Manufacture' implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use." Para. 17 of the same judgment reads thus: "These definitions make it clear that to become 'goods' an article must be something which can ordinarily come to the market to be bought and sold." In Aditya Mills Ltd. v. Union of India [1989] 73 STC ....