- (1.) THE Tribunal, Allahabad, has referred the following question of law under s. 256(1) of the IT Act, 1961 (hereinafter referred to as 'the Act'), for opinion to this Court : "Whether in law and on the facts of the case, the order of the CIT(A) relating to investment allowance under s. 32A of the IT Act, 1961, which has been upheld by the Tribunal is correct in law -
(2.) THE present reference relates to the asst. yr. 1980 -81.
(3.) BRIEFLY stated the facts giving rise to the present reference are as follows : The respondent is a private limited company. It is engaged in the business of processing of Mentha oil. Farmers and agriculturists enter at the business premises of the respondent -assessee along with Menthaherbs which is distilled at the plant of the respondent and oil is taken out. The respondent receives charges for the job. In the year in question, the ITO disallowed the claim of the investment allowance amounting to Rs. 18,777 under s. 32A of the Act. Feeling aggrieved, the respondent preferred an appeal before the CIT(A) who has allowed the claim of the investment allowance if necessary reserve has been created by the respondent which order has been upheld by the Tribunal. We have heard Sri Shambhoo Chopra, learned standing counsel appearing for the Revenue and nobody has appeared on behalf of the respondent -assessee.;