1989 (3) TMI 111

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....the court was delivered by S. S. SODHI J.-The assessee, Partap Steel Rolling Mills (Asr.) (P.) Ltd., Amritsar, is engaged in the business of manufacture and sale of steel. During the accounting period ending on September 30, 1976, investment allowance of Rs. 10,98,089 was claimed under section 32A of the Incometax Act, 1961 (hereinafter referred to as "the Act"), in respect of a new oxygen plan....

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....and that, therefore, even if oxygen was an article by itself independent from iron and steel and was otherwise a saleable commodity, the setting up of this unit was an integral part of the assessee's iron and steel manufacturing plant and it must, consequently, be considered to have been installed for the purpose of manufacture or production of one or more of the articles or things specified in th....

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.... the assessee to the investment allowance as claimed by it in respect of the oxygen unit set up by it. The Tribunal rightly observed: "In the modern techniques of manufacture, various intermediate processes are involved in an industry, which are performed by separate units of machinery but which are merely a chain in the process of producing the final item. The same is the case about the oxygen ga....