TaxTMI 
TaxTMI 
2000 (8) TMI 20
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.... the circumstances of the case, the Tribunal was right in law in holding that expenditure due to exchange rate difference was an expenditure of capital nature? (for the assessment years 1976-77 and 1977-78). 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that export insurance and freight, export packing charges and export stitching charges were not eligible for weighted deduction under section 35B of the Act? (for the assessment year 1978-79). 4. Whether, on the facts and in the circumstances of the case, the Tribunal was right in rejecting the claim of the assessee for investment allowance under section 32A with reference to electrical installation, electrification in workshop ....
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.... by us is question No. 4 which is as under: "4. Whether, on the facts and in the circumstances of the case, the Tribunal was right in rejecting the claim of the assessees for investment allowance under section 32A with reference to electrical installation, electrification in workshop and extension of cable trench? (for the assessment year 1978-79)." At the outset, learned counsel did not press his claim for investment allowance under section 32A for cable trench as the amount involved is very small. On behalf of the assessee, however, the claim for investment allowance under section 32A with reference to electrical installation and electrification in workshop has been pressed. As is pointed out by learned counsel for the assessee i....
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....p; Rs. 1. Duplicating machine 11,655 2. Electric calculating machine for the factory 5,625 3. Typewriter in the factory &....
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....cceed." Learned counsel for the assessee placed reliance on the Division Bench decision of the Calcutta High Court in CIT v. Tribeni Tissues Ltd. [1994] 2 06 ITR 92 and the Division Bench decision of the Bombay High Court in Zenith Steel Pipes Ltd. (No. 1) v. CIT [1990] 186 ITR 500. The taxing authorities have disallowed the claim for investment allowance under section 32A by holding that electrification and electrical installation were not investment for the plant. For the purpose of availing of investment allowance under section 32A of the Act, the equipment or installations even though not directly used in the manufacturing process should be necessary for it. The Division Bench decision of the Calcutta High Court in the case of Tri....