1996 (5) TMI 23

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....unal, Indore Bench, Indore, has on an application by the applicant-Department made under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), stated the case and referred the following question said to be of law for the opinion of this court, arising out of its order dated November 9, 1992, passed in I. T. A. Nos. 143 and 144/Ind of 1988 relating to the assessment years 198586 and 198....

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....eld the disallowances. The assessee came in second appeal before the Tribunal. The Tribunal by its order dated November 9, 1992, allowed the deduction under section 80HH in the assessment year 1985-86 and under sections 80HH and 80-I for the year 1986-87 as claimed by the assessee. The Tribunal, inter alia, observed : " The assessee was engaged in the business of construction of overhead wat....

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.... the activity of construction of a dam can be characterised as manufacture or producing of an article or articles, as the case may be, within the meaning of section 80HH(2)(i) of the Act. It may be that the assessee itself is manufacturing some of the articles which come into the construction of overhead water tanks but as observed by their Lordships of the apex court in the case of Shankar Con....