COMMISSIONER OF INCOME-TAX VS SHARVAN COLD STORAGE AND GENERAL MILLS, 1998 PTD-ALLAHABAD-HIGH-COURT-INDIA 3110 (1995)

Income-tax--

---Reference---Rectification of mistakes---Investment allowance---Withdrawal of investment allowance in respect of electrical installations, racks, plant and machinery in cold storage plant in rectification proceedings--Whether proper---Question of law---Indian Income Tax Act, 1961, Ss. 154 & 256.

Held, that the question whether the cold storage being not entitled to investment allowance of Rs.1,20,818 in respect of electrical installations, racks, plant and machinery, in view of section 32-A of the Indian Income Tax Act, 1961 which is applicable only to the business of manufacture or production of any article or thing such allowance was erroneous and whether the mistake was liable to be rectified under section 154 of the Act was a question of law

Bharatji Agarwal for Appellant.

R.K. Mishra for Respondent.

JUDGMENT

Heard Sri Bharatji Agarwal, learned counsel for the Revenue and Sri R.K. Mishra, learned counsel for the assessee.

This is an application under section 256(2) of the Income Tax Act, 1961.

Having heard learned counsel for the parties, we are of the opinion that the following question of law does arise out of the order passed by the Tribunal:

"Whether the cold storage being not entitled to investment allowance of Rs.1,20,818 in respect of electrical installations, racks plant and machinery, in view of section 32-A of the Income Tax Act, which is applicable only to business of manufacture or production of any article or thing hence the mistake was liable to be rectified under section 154 of the Act."

The Tribunal is directed to draw up a statement of the case and refer the aforementioned question of law to this Court.

M.B.A./1581/FC Order accordingly.