1989 (6) TMI 83

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....se of Sri Balaji Metal Finishers vs. ITO reported in 15 ITD 26. II. The learned CIT(A) erred in confirming the action of the ITO in computing the loss of live stock at Rs. 4,93,430 as against Rs. 5,06,660 on the plea that the value of live stock sent for salvage cannot be valued at 50 per cent of average cost. III. The learned CIT(A) erred in confirming the action of the ITO in not considering the company as industrial company ignoring that the company carries on business of dairy farming and an industrial company in the contest of s. 2(7)(c) of the Finance Act." 2. In so far as the second ground is concerned, it is seen that the issue is concluded in favour of the assessee by the order of the Tribunal in ITA Nos. 1585 and 1586/(Bo....

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....llowance on the plant and machinery used for this particular business. The learned CIT(A) further supported his reasoning by the decision of the Supreme Court in the case of Chowgule & Co. vs. Union of India (1981) 47 STC 124 (SC) and also the definition of the term "processing" as given in the Webster's Dictionary. 4. The assessee is still aggrieved and has come up in appeal before us. Shri Arvind Dalal, learned counsel appeared for the assessee and Shri Keshav Prasad, learned senior Departmental Representative appeared for the Revenue. After hearing both parties at length and on careful consideration of the material on our file, we see merit in the claim of the assessee. The assessee in this case obtains milk from the live stock of cow....

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....st meaning is process of making articles or materials by application of physical labour or mechanical power. The second meaning is a very limited sense to describe the transformation or raw material into a commercial commodity or a finished product which has a separate identity. 6. Requirement of s. 32A is that the new machiney or plant installed in the industrial undertaking should be used for the purpose of business of construction, manufacture or production of any article or thing not being article or thing specified in the list in the Eleventh Schedule. What is necessary is, therefore, that the industrial undertaking must manufacture or produce article not specified in the Eleventh Schedule. The process of production as to whether it....