TRIBENI TISSUES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1978-79, the following question of law has been referred to this court :

(2.) The facts are in a narrow compass. In the original assessment, which was completed under Section 143(3) on September 24, 1982, the Inspecting Assistant Commissioner had disallowed the entire claim for investment allowance despite the fact that the appropriate investment allowance reserve had been created and that details of the plant and machinery were filed and were on record. In appeal, the Commissioner of Income-tax (Appeals) in his order dated February 23, 1983, held that the Inspecting Assistant Commissioner was not justified in withholding the investment allowance due to the appellant.

(3.) The Inspecting Assistant Commissioner, while giving effect to the order of the Commissioner of Income-tax (Appeals), by his order passed under Section 143(3)/251 dated January 18, 1985, disallowed the investment allowance on electrical equipment, air-conditioning machines, tube-well and weighing machines with the following observations :