1996 (2) TMI 29

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....has been filed by the Commissioner of Income-tax, Cochin, under section 256(2) of the Income-tax Act, 1961, seeking reference of the following questions of law, as arising out of the appellate order dated June 4, 1993 (vide annexure "C", of the Income-tax Appellate Tribunal, Cochin Bench : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in ....

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.... amounted to manufacture and construction for the purpose of the claim made under the aforesaid three sections. The assessing authority rejected the said claim on the basis of the decision taken for the earlier assessment years to the effect that the assessee is not an industrial undertaking. In appeal, the Commissioner of Income-tax (Appeals) confirmed the said finding of the assessing authority.....

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.... articles, which are used in the building construction activity. Therefore, the words ' article or thing ' as used in section 80-I refer to movables only and an assessee would not be entitled to deduction under section 80-I in respect of profits and gains arising out of the construction of buildings as such. " It held that the assessee is entitled to the benefits of the aforesaid provisions.....

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....ection 80HH on the value of the articles manufactured or produced by him which articles have gone into/consumed in the construction of the dam. " It is submitted by counsel on either side that there is no authoritative pronouncement on this question either by this court or by the Supreme Court. Learned senior counsel appearing for the Department contended that this is a very important question ....