| Case ID |
1a0e418b-c0ff-444b-a43c-5b1486b2f2c8 |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 01, 1993 |
| Hearing Date |
Jan 01, 1993 |
| Decision |
The court held that the investment allowance claimed by Kothiwala Cold Storage was not admissible under section 32A(2)(b) of the Income-tax Act, 1961. The operation of a cold storage does not constitute manufacturing or production as defined in law. The Tribunal's decision to allow the investment allowance was incorrect, as it failed to recognize that both sub-clauses (ii) and (iii) of section 32A(2)(b) refer to activities related to manufacturing or production. Therefore, the court answered the question referred for its opinion in the negative, ruling in favor of the revenue. |
| Summary |
In the case of Commissioner of Income Tax v. Kothiwala Cold Storage, the Allahabad High Court addressed the issue of whether investment allowance could be claimed under section 32A of the Income-tax Act, 1961 for new machinery used in cold storage operations. The court emphasized that operating a cold storage does not involve the manufacture or production of goods as defined in legal terms. This ruling is significant for businesses in the cold storage sector, as it clarifies the limitations on claiming investment allowances. The court reiterated its previous decision in CIT v. Nandlal Cold Storage, which established that such claims are not permissible under the law. This case serves as a precedent for future references regarding investment allowance claims in similar contexts, highlighting the importance of understanding the definitions and applications of manufacturing and production within tax laws. Keywords: investment allowance, Income-tax Act, cold storage operations, manufacturing, production. |
| Court |
Allahabad High Court
|
| Entities Involved |
Kothiwala Cold Storage
|
| Judges |
A.N. Varma,
R.K. Gulati
|
| Lawyers |
Not available
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Kothiwala Cold Storage
|
| Citations |
1993 SLD 1811,
(1993) 199 ITR 399
|
| Other Citations |
Mittal Ice & Cold Storage v. CIT [1986] 159 ITR 18 (MP),
CIT v. S. Warriam Singh Cold Stores [1989] 178 ITR 585 (Punj. & Har.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
32A
|