UNIVERSAL CABLES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) On an application under Section 256(2) of the Income-tax Act, 1$61, the Tribunal was directed to refer certain questions and in consequence of the direction, the Tribunal has referred the following questions for our opinion which are set out at pages 1, 2 and 3 of the application :

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in not allowing the assessee-company even proportionate deduction on account of premium payable by the company ?

(3.) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that cash subsidy of Rs. 5,72,000 received during the year on generator is deductible from its cost for the purpose of computing depreciation and investment allowance allowable to the asses-see-company during the year ? Questions in R. A. No. 581(Cal) of 1985, assessment year 1985-86 :