- (1.) THE Tribunal, Allahabad has referred the following question of law under s. 27(1) of the WT Act, 1957, 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 in law justified in holding that the claim of the assessee for deduction under s. 5(1)(xxxii) of the WT Act, was allowable -
(2.) THE assessment year involved is 1982 -83. The assessee who is an individual claimed exemption as per provisions of s. 5(1)(xxxii) of the Act, in respect of the investment made in the firm M/s Bhargava Engineering Corpn. on the ground that the said firm has been held as industrial undertaking by the Tribunal. The claim was not allowed by the WTO, simply on the ground that the Department has not accepted the decision of the Tribunal. However, in appeal the CIT(A) allowed the claim and has directed the AO to allow exemption in respect of the investment in M/s Bhargava Engineering Corpn. This order has been confirmed by the Tribunal.
(3.) HEARD Sri Shambhu Chopra, learned standing counsel for the Department. None appeared for the assessee. The Tribunal has recorded a finding that M/s Bhargava Engineering Corpn. is an industrial undertaking, therefore, the assessee was entitled to claim exemption of investment in M/s Bhargava Engineering Corpn. in which he was one of the partners, in view of s. 5(1)(xxxii) of the Act. We find no legal infirmity in the order of the Tribunal. The Tribunal has followed the order of its earlier years. The learned standing counsel could not point out that a different view has been taken by the High Court in the case of the assessee, than the one taken by the Tribunal for the earlier assessment years. In the result, we answer the question referred to us in the affirmative i.e. in favour of the assessee and against the Department. There shall be no order as to costs.;