2017 (10) TMI 1294

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....h Agarwal, Advocate ORDER Per Shri A.T.Varkey, JM This is an appeal filed by the revenue against the order of Ld. CIT(A)-9, Kolkata dated 30.07.2015 for AY 2010-11. 2. The sole issue involved in this appeal of revenue is against the order of Ld. CIT(A) in allowing depreciation on dumpers and tippers @ 30% as against depreciation @15% allowed by the AO. 3. We have heard rival submiss....

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....e Karnataka High Court in the case of CIT Vs. Mahaling Setty & Co. (1992) 195 ITR 526 (Kar), wherein the Hon'ble High Court has held as under: "INVESTMENT ALLOWANCE - ELIGIBILITY FOR ALLOWANCE - MACHINERY MUST BE OWNED AND WHOLLY USED FOR PURPOSES OF BUSINESS - PURPOSE OF BUSINESS INCLUDES EVERY ACTIVITY NECESSARY TO CARRY ON BUSINESS - BUSINESS OF CONSTRUCTION WORK - DUMPERS AND TIPPERS ....

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....s not confined to movable property only under section 32A of the Incometax Act, 1961. Investment allowance is granted, inter alia, in respect of machinery or plant specified in sub-section (2) of section 32A which is owned by the assessee and is wholly used for the purpose of business carried on by the assessee. The purpose of business includes every activity which is necessary to carry on the bus....

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.... proviso to section 32A has to be read in the setting in which other clauses (a), (c) and (d) are used. Specially, clauses (a) and (b) in the second proviso make it clear that exclusion from the provision is only in respect of the machinery or plant or appliances connected with the administrative part of the business, i.e., those used in the office premises or residential accommodation of the asse....