Madhya Pradesh High Court
Commissioner Of Income-Tax vs Kalpana Lamp Components Pvt. Ltd. on 1 February, 1989
Equivalent citations: [1989]178ITR330(MP)
JUDGMENT
G.G. Sohani, Actg. C.J.
1. By this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion :
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that fluorescent tubes were not domestic electrical appliances and the assessee was entitled to investment allowance under Section 32A of the Income-tax Act, 1961 ?"
2. The material facts giving rise to this reference, briefly, are as follows :
The assessee carries on the business of manufacturing electric tubes. For the assessment year 1980-81, the assessee claimed investment allowance under Section 32A of the Act. The claim of the assessee in this behalf was not upheld by the Inspecting Assistant Commissioner (Assessment) on the ground that the goods produced by the assessee were covered by item No. 12 of the XIth Schedule to the Act. The appeal preferred by the assessee before the Commissioner of Income-tax (Appeals) was allowed and the assessee was held entitled to investment allowance. Aggrieved by that order, the Revenue preferred an appeal before the Tribunal which was dismissed. Hence, the Revenue sought a reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.
3. The answer to the question referred to this court turns on the meaning of the expression "electric appliances" occurring in item No. 12 of the XIth Schedule to the Act. That provision lays down that domestic electric appliance means electric appliances normally used in the household and similar appliances used in places such as hostels, restaurants, hotels, offices, educational institutions and hospitals. The word "appliance" means, according to the Random House Dictionary, (i) an instrument, apparatus or device for a particular purpose or use ; (ii) a piece of equipment, usually operated electrically, especially for use in house or for performance of domestic chores, as a refrigerator, washing machine, toaster, etc. Fluorescent tubes manufactured by the assessee are articles of general use not necessarily confined to domestic use. Moreover, it cannot be held that the said article is used for performing the routine task of a housekeeper or of a person in charge of hotels, restaurants, hostels, offices, educational institutions and hospitals. The Tribunal was, therefore, justified in holding that fluorescent tubes were not electric appliances and that the assessee was entitled to investment allowance under Section 32A of the Act.
4. For all these reasons, our answer to the question referred to this court is in the affirmative and against the Revenue. In the circumstances of the case, parties shall bear their own costs of this reference.