TaxTMI 
TaxTMI 
1998 (3) TMI 699
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Revenue arising" from the assessment of the respondent Dowel Erectors, for the assessment year 1979-80 is as to whether the assessee was entitled to investment allowance under section 32A(2)(i)( iii) of the Income-tax Act on the ground that its activity amounted to manufacture or production of an article or thing. The activity of the assessee has been described by the Tribunal as under: &....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the assessee is engaged in the business of erection which work is done at the site and involves assembling of various parts and fabrication to the extent required for being attached to complete the boiler. The boiler so erected isnot meant to be moved. It rests on a foundation on the ground and is meant to become a part of the plant and machinery of the industrial undertaking for which the e....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... observed by the apex court that the word "construction" had been used in that section, as that term was appropriate in the case of ships, as in common parlance, the activity of ship building is not regarded as manufacture and the more appropriate expression was the word "construction". The use of the word "construction" in that section, it was held by the court, was ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....etermined in the circumstances of each case. The intention of the parties, viz., the asses-see and the industrial undertaking for which he performed the work was to keep the boiler attached to the earth so long as it was used as a boiler, and that boiler was not intended, to be removed and used elsewhere at any defined intervals. In the case of South Indian Bank Ltd. v. V. Krishna Chettiar and Br....