(1.) The Tribunal has referred the following questions of law under Section 256(1) of the IT Act, 1961 (hereinafter referred to as Act), for opinion to this Court :
(2.) Briefly stated, facts giving rise to the present reference are as follows :
(3.) We have heard Shri Vikram Gulati, learned counsel for the applicant, and Shri A.N. Mahajan, learned counsel for the Revenue. It has been clearly stated by Shri Vikram Gulati that the question referred to is covered by the decision of the Hon'ble Supreme Court in the case of Delhi Cold Storage (P) Ltd. v. CIT, (1991) 191 ITR 656 (SC). In the aforesaid case, the Hon'ble Supreme Court has held that in a cold storage, vegetable fruits and several other articles which require preservation by refrigeration are stored. While, as a result of long storage, scientific examination might indicate loss of moisture content that is not sufficient for holding that the stored articles are undergoing a process within the meaning of Section 2(7)(c) of the Finance Act, 1973, and, accordingly, cold storage was not industrial company. Thus, it is not entitled for investment allowance under Section 32A(2)(b)(iii) and Section 80J or 80HH of the Act. Accordingly, we answer all the three questions of law in the affirmative, that is, in favour of the Revenue and against the assessee. However, the parties shall bear their own costs.