1996 (7) TMI 47

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....IWARI J.--At the instance of the Commissioner of Income-tax, Bhopal, the Tribunal has stated the case and referred the undernoted questions labelled as of law, arising out of the order dated January 23, 1992, passed by the Tribunal in I. T. A. Nos. 243 and 244/Ind. of 1991 on the applications registered as R. A. Nos. 86 and 87/Ind. of 1992, for the assessment year 1987-88 for our opinion : " (1....

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....he original assessments were completed on December 21, 1987 and December 26, 1988, respectively. The assessment orders were considered erroneous and prejudicial to the interests of the Revenue by the Commissioner of Income-tax. He noticed that the Assessing Officer had allowed depreciation at 30 per cent. on air-compressor and drilling rig and other accessories whereas in his opinion depreciation ....

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....of Income-tax. The Tribunal also held that drilling of tubewells resulted in the production of underground water and, thus, held that that activity resulted in an industrial undertaking. The Tribunal, thus, held that the assessee was entitled to investment allowance under section 32A of the Act as a small scale industrial undertaking. Dissatisfied, the Department filed an application under section....

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....cluded. As regards the question covered by question No. 2, it, is submitted that this question is consequential to question No. 1. The assessee carrying on the business of drilling borewells is held to be an industrial undertaking, engaged in manufacturing or producing articles or things. This point is also answered in the decision of CIT v. Super Drillers [1988] 174 ITR 640 (AP), holding that ....