Delhi High Court
Commissioner Of Income-Tax vs Univmine (P.) Ltd. on 22 July, 1992
Equivalent citations: [1993]202ITR825(DELHI)
Author: B.N. Kirpal
Bench: B.N. Kirpal
JUDGMENT
1. The petitioner seeks reference of the following question :
"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in directing that the assessed is entitled to investment allowance under section 32A of the Income-tax Act, 1961, in its business of mining and extraction of marble ?"
2. The respondent-assessed is carrying on the business of extracting and selling marble. According to the petitioner herein, the assessed is not entitled to investment allowance under section 32A of the Income-tax Act, 1961.
3. We, however, find that allowance under the said provision can be given to an industrial undertaking for the purpose of business of construction, manufacture or production of an articles or thing specified in the list in the Eleventh Schedule. It is not in dispute that marble is one of the items which are mentioned in the Eleventh Schedule while counsel for the petitioner may be right in contending that mining of marble may not amount to manufacture but the said provision, namely, section 32A(2)(b)(iii) of the Income-tax Act, applies to an industrial undertaking which, inter alia, carries on the business of production of an article. The mining of marble would amount to carrying on the business of production and reference may usefully be made to the case of Chrestien Mica Industries Ltd. v. State of Bihar [1961] 12 STC 150 (SC), where the Supreme Court held that the process of mining is a process of production.
4. Following the said decision, we feel that the answer to the question proposed is self-evident and therefore, this petition is dismissed.