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The Commissioner Of Income Tax v. Anand Sheet Grah - INCOME TAX REFERENCE No. 53 of 1989  RD-AH 1677 (10 December 2004)
Income Tax Reference No.53 of 1989
Commissioner of Income Tax, Agra v.
M/s Anand Sheet Grah, Etawah
Hon'ble R.K.Agrawal, J.
Hon'ble Vikram Nath, J.
(Delivered by R.K.Agrawal, J.)
The Income Tax Appellate Tribunal has referred the following question of law under Section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for opinion to this Court:-
"Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to set off of the carried forward investment allowance of the assessment year 1980-81 against the income of the assessee for the assessment year 1984-85?"
The reference relates to the Assessment Year 1984-85.
The respondent runs a cold storage. The Income Tax Officer has not allowed the set off of unabsorbed investment allowance for the assessment year 1980-81 while computing the assessment for the assessment year 1984-85 on the ground that the respondent was not entitled to get investment allowance on the plant and machinery installed at the cold storage. It appears that for the assessment year 1980-81 the question had arisen whether the respondent was entitled to get investment allowance in respect of plant and machinery installed at the cold storage and the Tribunal in its decision for that assessment year has held that the respondent was entitled to get investment allowance. At the request of the Department, the question was referred under Section 256(1) of the Act for opinion to this Court. We are not aware whether this Court has decided the reference as the learned Standing Counsel has not been able to give a definite statement. The Commissioner of Income Tax (Appeals) allowed the respondent to set off the carry forward investment allowance for the assessment year 1980-81 against the income of the assessment year 1984-85, which has been upheld by the Tribunal.
We have heard Sri A.N.Mahajan, learned Standing Counsel for the Revenue. No body has appeared for the respondent assessee.
As the Apex Court in the case of Delhi Cold Storage v. Commissioner of Income Tax, (1991) 191 ITR 656 has held that the investment allowance is not admissible to plant and machinery installed at the cold storage as it is not an industrial company, the question of set off of carry forward investment allowance for the assessment year 1980-81 does not arise.
We accordingly answer the question referred to us in the negative, i.e., in favour of the Revenue and against the assessee. However, there shall be no order as to costs.
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