M.Katju J. - (1.) This is an income-tax reference under Section 256(1) of the Income-tax Act, 1961, in which the following questions have been referred to us for our opinion : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the tractor was not a road transport vehicle ?
(2.) Whether the Tribunal was legally correct in directing the Inspecting Assistant Commissioner of Income-tax (Asst.) that the investment allowance should be allowed to the assessee according to the provisions of Section 32A ?" 2. The assessee is a U.P. Government undertaking which had been established for industrial and agricultural development of Western U.P. The previous year for the relevant assessment year 1978-79 ended on June 30, 1977.
(3.) The assessee gave tractors on hire. These tractors were fitted with trolleys and they were exclusively used for hiring purpose by the assessee. The assessee claimed investment allowance on these tractors.;