COMMISSIONER OF INCOME TAX Vs. BAKHTAWAR SINGH

JUDGEMENT

(1.) This is an income-tax reference under s. 256(1) of the IT Act at the instance of the Revenue and following three questions have been referred by the Tribunal for opinion of this Court :

(2.) Suffice it to say that the assessee is a registered firm engaged in the business of manufacturing and supply of plant and equipment in the nature of Ash Handling and Oil Distribution System for thermal power plants and steel plants in the country on turn-key basis. It is also engaged in the manufacture, fabrication and erection of steel works for public sector undertakings and the Government Departments. It is further engaged in the construction of industrial foundations, public buildings and housing complexes for steel plants and thermal power plants. The assessee has established separate industrial undertakings at various work sites for manufacture, processing, erection, testing and commissioning of Ash Handling systems. In these circumstances, the assessee claimed relief under ss. 32A, 80HH and 80I of the IT Act, but the AO disallowed the claim of the assessee.

(3.) Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A), who, following the order of the Tribunal Nagpur Bench, in assessees own case for the asst. yrs. 1979-80 to 1984-85, allowed the appeal of the assessee. Aggrieved by the order of the CIT(A), the Department preferred an appeal before the Tribunal and the Tribunal dismissed the appeal of the Department and confirmed the order of the CIT(A). Hence, the Department approached the Tribunal to make a reference and accordingly, the Tribunal has referred the aforesaid three questions for opinion of this Court.