- (1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following five questions of law. The first three at the instance of the Commissioner of Income-tax and remaining two at the instance of the assessee under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for opinion to this court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in upholding the order of the Commissioner of Income-tax (Appeals) directing the Income-tax Officer to allow investment allowance under Section 32A ? 2. Whether on the facts and in the circumstances of the case, the machinery employed by the assessee entitles the assessee to investment allowance within the meaning of Section 32A(2)(b) of the Income-tax Act, 1961 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in deleting disallowance of Rs. 99,180 and holding that the provision of Rule 3(c) of the Companies (Acceptance of Deposits) Amendment Rules, 1981 is not applicable in the assessment year 1981-82 ? 4. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally correct in holding that the assessee-company was not entitled to carry forward of the amounts of unabsorbed deficiency under Section 80J from earlier years which had already been held to be allowable in the respective earlier years ? 5. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally correct in holding that the assessee-company was not entitled to relief under Section 80J of the Income-tax Act, 1961 ?"
(2.) At the outset it may be mentioned here that nobody has appeared on behalf of the assessee to press this reference made at its instance and, therefore, the two questions which have been referred at the instance of the assessee are being returned unanswered.
(3.) Briefly stated the facts giving rise to the present reference are as follows : The reference relates to the assessment year 1981-82. The applicant, Jai Prakash Associates Pvt. Ltd., is a company engaged in the construction of tunnels, bridges and roads, etc. It claimed investment allowance under Section 32A and also relief under Section 80J of the Act. It has also claimed carry forward of unabsorbed deficiency under Section 80J from earlier years. The Income-tax Officer had disallowed the claim on the ground that it does not come within the definition of industrial undertaking. Further, the Income-tax Officer had disallowed the payment of interest to depositors in excess of 15 per cent. per year under the Companies Deposit Rules. However, in appeal the Commissioner of Income-tax (Appeals) has allowed the claim of investment allowance under Section 32A and Section 80J of the Act. However, he also upheld the order regarding the disallowance of interest in respect of the prescribed limit of 15 per cent. under the Companies Deposit Rules.;