Madras H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that, the assessee was entitled to investment allowance even though there is no activity of manufacturing or production of any article by the assessee ?

Counsel Appeared

T. Naresh Kumar, for the Revenue : P.P.S. Janarthana Raja, for the Assessee

JUDGMENT

K. GNANAPRAKASAM, J. :

At the instance of the Revenue, the following question has been referred to us ; “Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that, the assessee was entitled to investment allowance even though there is no activity of manufacturing or production of any article by the assessee ?”

2. A similar question came to be decided by this Court in CIT vs. S. Devaki (2000) 244 ITR 669 (Mad), wherein the question has been answered in favour of the assessee and against the Revenue. Applying the principles laid down in the abovesaid decision, we also answer the question referred to us in favour of the assessee and against the Revenue.

[Citation : 252 ITR 87]