COMMISSIONER OF INCOME TAX Vs. MAHAVIR DRILLING CO

JUDGEMENT

(1.) THIS is a reference made under Section 256 (1) of the IT Act at the instance of Revenue (CIT) to answer following questions of law which arise out of ITA No. 1107/1108/ind/1993 :

(2.) WHETHER, on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in upholding cancellation of the rectification order passed by the AO on 19th Oct. , 1992, despite the decision of the Hon'ble Supreme Court in the case of N. C. Budharaja and Co. (supra) on the ground that the aforesaid order of the Supreme Court was passed on 7th Sept. , 1993 and hence, it would not be applicable to the order dt. 19th Oct. , 1992 of the AO under Section 154 in the case ?" 2. Facts as mentioned in statement of case drawn by the Tribunal need to be taken note of infra.

(3.) THE respondent, an assessee, is a firm engaged in the business of drilling tube-well. In the asst. yr. 1987-88, the assessee claimed investment allowance of Rs. 2,99,175 on drilling rig machine which the AO allowed it to be set off against the income of asst. yrs. 1988-89 and 1989-90 by his order passed on 31st March, 1989.