TaxTMI 
TaxTMI 
1998 (3) TMI 699
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....referred to us at the instance of the 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 descr....
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.... rails, etc." It is evident 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 industri....
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....d 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 not intended to apply to construction ....
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....e 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 Bros., AIR 1976 Mad 215, another Division Bench of this court ad....