CIT Vs. U.P. RAJKIYA NIRMAN NIGAM LTD

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Allahabad has referred the following question of law under section 256(1) of the Income Tax Act, 1961, hereinafter referred to as the Act, for opinion to this Court. 'Whether, the Income Tax Appellate Tribunal was, in law, justified in holding that the assessee was eligible for investment allowance under section 32A(2)(iii) of the Income Tax Act, 1961?'

(2.) THE present Reference relates to the assessment years 1978 -79 and 1979 -80.

(3.) IN view of the decision of the Apex court in the case of CIT v. N.C. Budharaja and Co. : [1993]204ITR412(SC) , the persons who are engaged in construction activities do not produce any article or thing so as to entitle them for claiming investment allowance under section 32A of the Act. Thus, the Tribunal was not justified in allowing the investment allowance to the respondent -assessee.