COMMISSIONER OF INCOME TAX Vs. EXPRESS PRINTING WORKS

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income Tax Act, 1961, the following question has been referred to this Court: Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was justified in law in directing not to withdraw the Investment Allowance already granted as wrongly allowed to the assessee firm as per the provision contained in subsection C of Section 155(4A) of the IT Act, 1961?

(2.) WITHOUT going into the circular referred to by the learned Counsel appearing on behalf of the parties with regard to the monetary limit within which the matter may not be referred to this Court for adjudication, we have heard the learned Counsel for the parties on the merits of the case.

(3.) FROM perusal of the aforesaid finding by the tribunal, it is clear that there was some dispute with regard to the mentioning of the investment allowance in a particular head. The tribunal found that the transfer of the investment allowance to the Partners' Capital Account was a mistake and the said credit balance was never utilized for any other purpose. The tribunal further found that the assessee had purchased plant and machinery during the relevant assessment year by utilizing the entire amount of reserve credit. Having regard to the findings of fact arrived at by the CIT (Appeal) and the tribunal, we do not find any reason to answer the Reference in as much as in the facts of the case, the answer that may be given may not be of any purpose in view of the findings recorded by the two authorities. This Reference therefore stands disposed of.