| Case ID |
42f9ce11-3727-48a8-8b59-2705e28d7ce1 |
| Body |
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| Case Number |
MISC. CIVIL CASE No. 315 OF 1983 |
| Decision Date |
Jan 07, 1986 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the definition of 'manufacturing process' from the Factories Act, 1948 cannot be applied to the Income-tax Act, 1961. The operation of a cold storage plant does not constitute manufacturing or production as defined under Section 32A. Consequently, the assessee's claim for an investment allowance was rejected, affirming that the goods preserved remain unchanged and do not result in the creation of a new marketable commodity. |
| Summary |
In the case of Mittal Ice & Cold Storage vs. Commissioner of Income Tax, the Madhya Pradesh High Court addressed the applicability of investment allowance under Section 32A of the Income-tax Act, 1961. The central issue was whether operations of a cold storage plant could be classified as manufacturing or production. The court referenced definitions and principles from various statutes, ultimately concluding that the cold storage process does not create a new marketable product. The decision emphasizes the importance of contextual interpretation of legal terms and affirms that mere preservation of goods does not qualify for investment allowance under the Income-tax Act. This case serves as a significant reference for similar disputes regarding investment allowances in the context of manufacturing definitions. Keywords: Investment Allowance, Income-tax Act, Cold Storage, Manufacturing Process, Legal Interpretation. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
G.G. Sohani,
K.L. Shrivastava
|
| Lawyers |
G.M. Chaphekar,
D.D. Vyas,
R.C. Mukati
|
| Petitioners |
Mittal Ice & Cold Storage
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1986 SLD 1584 = (1986) 159 ITR 18
|
| Other Citations |
CIT v. Yamuna Cold Storage [1981] 129 ITR 728 (Punj. & Har.),
Delhi Cold Storage (P.) Ltd. v. CIT [1985] 156 ITR 97 (Delhi),
Ram Narain v. State of U.P. AIR 1957 SC 18,
South Bihar Sugar Mills Ltd. v. Union of India AIR 1968 SC 922,
Union of India v. Delhi Cloth & General Mills Co. Ltd. AIR 1963 SC 791,
CST v. Dr. Sukh Deo AIR 1969 SC 499,
Bhogilal Chunilal Pandya v. State of Bombay AIR 1959 SC 356
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
32A
|