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By Vijay Kumar

Income Tax

Assessee not entitled to investment allowance on dewatering equipment used in construction work - 'Business of construction, manufacture or production of any article or thing' not to include removing water from land - Delhi HC

The Assessee, who started a business in the name and style of M/s. Complete Dewatering Systems with effect from July 1, 1977, claimed that he is engaged in two distinct activities, for each of which he claimed investment allowance under Section 32A of the Act. The first activity was the running of an industrial undertaking engaged in the business of construction. The assessee claimed to have participated in the business of construction by dewatering the land i.e. pumping out water from the ground water table so that the work of excavation of the land thereunder could take place in completely dry conditions. According to the assessee dewatering is integral to the construction activity and for this purposes he used his own equipments on the site. The second activity was the manufacture of the dewatering equipment itself.

FEMA

FEMA violations - delay in investigation - passports to be released : Bombay HC

IF you thought the dark days of FERA are over, read this story. And do remember that there is no imprisonment under the FEMA.

Central Excise

Supplier of raw materials getting his goods manufactured through several job workers, not a manufacturer - job workers are manufacturers : CESTAT

Suppliers of cotton yarn to job workers who converted the yarn into bed sheets and towels on payment of charges are not manufacturers of bed sheets and towels.; The yarn loses its commercial identity and becomes bed linen / towel at the hands of the weavers who are independent entrepreneurs not subject to any control and superintendence by the appellants.; Just like the women who tie knots at either end of the towels and bed linens for a payment, the weavers also work for a compensation paid by the appellants.

See our columns tomorrow for the judgements