TaxTMI 
TaxTMI 
1989 (2) TMI 94
X X X X Extracts X X X X
X X X X Extracts X X X X
....ered by S. S. SODHI J.-The matter here pertains to the admissibility of investment allowance in respect of machinery or plant for cold storage under section 32A(2)(b)(ii) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). During the assessment year 1978-79, the assessee, S. Warriam Singh Cold Stores, claimed a sum of Rs. 64,399 in respect of machinery and plant installed in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... B. Cold Storage lndustries Pvt. Ltd. v. CIT [1987] 166 ITR 646 (Cal), where it was held that as the object of putting goods in cold storage was mainly to preserve their original condition and not to produce anything new and that by such preservation, no new marketable article is brought into existence, machinery or plant installed in the cold storage was not for manufacture or production of any a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....etable or being a commercial commodity. The concept of marketability is, in our view, a wholly unwarranted intrusion into this provision. The matter regarding cold storage came before this court in CIT v. Yamuna Cold Storage [1981] 129 ITR 728, in the context of its claim for depreciation on the plea that it fell within the definition of factory building. It was held that the process undertaken....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nderground and water on the surface of the ground remained the same substance, yet, it was held entitled to investment allowance in respect of the machinery purchased. On a parity of reasoning, it was contended that in a cold storage, the production of cold air must also be treated as "production" or "manufacture" of an "article" or "thing" in terms of section 32A of the Act. After giving our c....