1982 (4) TMI 86

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....79-80 and 1980-81, against the orders of the Commissioner (Appeals)-II, Kanpur, deal with common issues and are, therefore, for the sake of convenience, disposed of by a consolidated order. 2. The assessee is a registered firm, which runs a cold storage. Before the ITO it was claimed that the assessee was entitled to investment allowance as laid down by section 32A of the Income-tax Act, 1961 (....

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....ld storage was a factory as defined under the Factories Act, 1948, and, therefore, the cold storage can be said to be involved in manufacture. Summing up, Shri Gulati vehemently argued before us that in the instant case it is not under dispute that the assessee is a small scale industry and the only point for consideration on which claim of investment allowance can be refused is whether the assess....

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....gh Court will not be applicable to the facts of the present case. Our attention was also invited to the words of section 32A, which lays down that for the grant of investment allowance not only the business should be a small scale industrial undertaking, it should also be of manufacture or produce of any article or thing. Proceeding further, Shri Jauhari submitted that while the function of the co....

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....ordships took into consideration the definition of "manufacturing process" as laid down in section 2(k) of the Factories Act, 1948, and came to the conclusion that the process undertaken in the cold storage is a process of treating the articles or goods with a view to preserve them for their use or sale, and, therefore, the requirements of clause (k)(i) of section 2 of the Factories Act, 1948, wer....