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1 - 10 of 10 (0.32 seconds)Section 43 in The Factories Act, 1948 [Entire Act]
Section 2 in The Finance Act, 1996 [Entire Act]
Section 2 in The Income Tax Act, 1961 [Entire Act]
Section 32A in The Income Tax Act, 1961 [Entire Act]
Addl. Commissioner Of Income-Tax vs Farrukhabad Cold Storage (P.) Ltd. on 16 September, 1976
It is with reference to the said definition that it was held by the Hon'ble Allahabad High Court in the case of Kanodia Cold Storage (supra) that the freezing chamber with insulated walls in a cold storage amounted to a 'plant' which was entitled to depreciation at the rate of 15 per cent on its written down value. It does not help the assessee as this is not the point in issue before us. Section 2(7)(d) of the Finance Act, 1966 and the Finance (No. 2) Act, 1967, defined an 'industrial company' as a company which was mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining. It is with reference to the said definition that it was held by the Hon'ble Allahabad High Court in the case of Farrukhabad Cold Storage (P.)
Section 32 in The Factories Act, 1948 [Entire Act]
Section 80HH in The Income Tax Act, 1961 [Entire Act]
E. D. Sassoon And Company Ltd vs The Commissioner Of Income-Tax,Bombay ... on 14 May, 1954
Ltd. (supra), decided by the Hon'ble Allahabad High Court, the question examined was whether the assessee was a 'priority industry' under Section 80-I of the Act on the ground that it was engaged in the activity of production of processed seed within the meaning of Section 80B(7), read with item (28) of the Sixth Schedule of the Act. It was held that processing of seed was different from the keeping of potatoes in the cold storage and that even if the keeping or preservation of potatoes in the cold storage amounted to 'processing', it would not amount to the assessee's engagement in the production of processed seeds as the potatoes could be used for multifarious purposes. Here also, the question dealt with and answered by the Hon'ble High Court was not under Section 32A or 80HH.
Commissioner Of Income-Tax vs Yamuna Cold Storage on 4 February, 1981
In the case of Yamuna Cold Storage (supra), again, though a cold storage was held to be a factory under the Factories Act, the Hon'ble Punjab and Haryana High Court was only considering the meaning of 'plant' under Section 43(3) with reference to thermocole insulation. It was held that as a factory building, the building of cold storage was entitled to depreciation at the rate of 15 per cent. That is how the definition of 'manufacturing process' under the Factories Act, as amended by the Factories (Amendment) Act, 1976 does not assist the assessee on the facts of the present case. We have to see whether, on the wordings of Sections 32A and 80HH, the assessee was entitled to investment allowance and deduction. Here, it will be noticed that Section 32A uses the expression 'business of manufacture or production of any article or thing'. The expression used in Section 80HH is similar, namely, 'to manufacture or produce articles'. There is no reference to processing as used in the definition of 'industrial company' under Section 2(7)(d) of the Finance Act, 1966 and the Finance (No. 2) Act, 1967. There is force in the submission made on behalf of the department that unlike Section 80J(4)(iii), reference is not made in Section 32A or 80HH regarding the 'operation of the cold storage plant'. This would show that mere processing (even if the potatoes were held to undergo processing in a cold storage) is not recognised under Sections 32A and 80HH to amount to manufacture or production of any article or thing. The same expression is used in Sections 80HHA and 80-I(2)(iii) of the Act. There is another factor also which we may mention in passing. Section 35C of the Act, which deals with agricultural development allowance, refers to a company or a co-operative society being engaged in the manufacture or processing of any article or thing which is made from or used in such manufacture or processing as raw material, any product of agriculture, animal husbandry or dairy or poultry farming. As already noticed above, neither Section 32A, nor Section 80HH refers to processing of any article or thing. Viewed in this context, we are of the view that the income-tax authorities were quite justified in not upholding the claims of the assessee under Sections 32A and 80HH as the assessee did not satisfy the requirements of these provisions.
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