TaxTMI 
TaxTMI 
1990 (2) TMI 89
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....allowance made under section 32A. 2. The assessee is a firm carrying on the business of exhibiting motion pictures in a theatre called "Theatre Santosh". During the previous year relevant to this assessment for 1982-83, the assessee had purchased and installed a generator for producing electricity so that the shows could be run, without interruption, in the event of failure of electric supply. ....
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....nerator was very much essential and that the electricity produced was directly being used for running the shows which was the assessee's business. Proceeding further he contended that the image produced on the screen by projection of the film is an "article" or "thing" within the meaning of the words employed in section 32A to satisfy the condition. It was his argument that there is no warrant to ....
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....heatre v. Eighth ITO [1986] 15 ITD 432 (Mad.) wherein it is held that "article" or "thing" employed in section 32A(2)(b)(iii) would connote only concrete or tangible or corporeal objects and that an image produced on screen which is only illusory would not fall within these terms. There is the decision of the Bombay Bench of the Tribunal also in the case of Fida Film & Hotel Co. (P.) Ltd. v. First....
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....The plant is no doubt of the industrial undertaking. But the industrial undertaking as such is not producing any article or thing in its business, for, as the authorities aforementioned hold, only corporeal objects could be an article or thing for the purpose of investment allowance. Generated electricity is not sold or distributed by the assessee, but used for the purpose of running the projector....