COMMISSIONER OF INCOME TAX Vs. YOGENDER SHARMA

JUDGEMENT

(1.) IN this reference under Section 256 (1) of the Income Tax Act, 1961 (for short the Act), the following question of law has been referred for our opinion:-Whether on the facts and in the circumstances of the case, the ITAT was correct in law in directing the ITO to grant investment allowance to the assessee in terms of Section 32a of the Income-tax Act, 1961

(2.) THE Assessee is a practicing Radiologist and he had installed an X-ray machine on which he claimed a deduction by way of an investment allowance under section 32a of the Act. This was disallowed by the Assessing Officer and also by the Commissioner of Income Tax (Appeals ). However, the Income Tax Appellate tribunal (for short the Tribunal) while relying upon an order passed by the nagpur Bench of the Tribunal in some other case came to the conclusion that the assessee was entitled to the deduction under Section 32a of the Act. It is in these circumstances that the present reference is made to this Court.

(3.) IT is not clear from the statement of the case whether the Assessee had purchased the X-ray machine for installation in his clinic or somewhere else. Learned counsel for the parties say that we may proceed on the basis that X-ray machine was installed in the clinic of the Assessee.