BUILDERS ASSOCIATIONS OF INDIA versus UNION OF INDIA AND ORS.

BUILDERS ASSOCIATIONS OF INDIA versus UNION OF INDIA AND ORS.

The word 'construction' in Section 32A(2)(b)(iii) of the Income Tax Act, 1961 cannot be read independently of the words 'manufacture or production of any article or thing not being an article or thing specified in the Eleventh Schedule.' The structure and context of the provision require construction, manufacture, or production to be associated with qualifying articles or things, consistent with Budharaja & Co. Opinions of ministries and circulars under other sections do not alter this principle.

Parties
Petitioner: Builders Associations of India; Respondents: Union of India and Others
Jurisdiction
India
Judgment Date
01 August 1994
Procedural Posture
Writ Petition (civil) No. 430 of 1994 Under Article 32 / Supreme Court, Decision at Admission
Outcome
Writ petition dismissed at admission stage
Legal Topics
Interpretation of Tax Statutes, Investment Allowance, Article 32 Writ Jurisdiction
Tax Law Constitutional Law Interpretation of Tax Statutes Investment Allowance Article 32 Writ Jurisdiction

Case Brief

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Parties

Builders Associations of India

Petitioner

Union of India and Others

Respondents

Procedural Posture

Writ Petition (civil) No. 430 of 1994 Under Article 32 / Supreme Court, Decision at Admission

Legal Issues

  1. 1 Whether the word 'construction' in Section 32A(2)(b)(iii) of the Income Tax Act, 1961 should be read independently of the words 'manufacture or production of any article or thing'.
  2. 2 Whether the decision in Commissioner of Income Tax v. N.C. Budharaja & Co. requires reconsideration in light of certain circumstances not previously considered.

Ratio Decidendi

The word 'construction' in Section 32A(2)(b)(iii) of the Income Tax Act, 1961 cannot be read independently of the words 'manufacture or production of any article or thing not being an article or thing specified in the Eleventh Schedule.' The structure and context of the provision require construction, manufacture, or production to be associated with qualifying articles or things, consistent with Budharaja & Co. Opinions of ministries and circulars under other sections do not alter this principle.

Court Disposition

Writ petition dismissed at admission stage

Orders

  • The writ petition is dismissed.