- (1.) THE Tribunal, Delhi, has referred following questions of law under s. 256(2) of the IT Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court : "1. Whether, on facts and in the circumstances of the case, the Tribunal was right to hold that the assessee was entitled to depreciation at the rate of 20 per cent in respect of generator as against 15 per cent allowed by the Revenue ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law to hold that the generator was part of the machinery and plant for the manufacture of medical equipment and that subject to other conditions being satisfied, assessee was entitled to deduction on account of investment allowance under s. 32A -
(2.) THE reference relates to the asst. yrs. 1986 -87 and 1987 -88. While the first question is common to both the assessment years, the second question is confined to the asst. yr. 1986 -87 only.
(3.) WE have heard Shri A.N. Mahajan, learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent/assessee. It has been stated by Shri A.N. Mahajan, learned standing counsel, that this Court in CIT vs. Indian Metal Industries respect of generator. In this view of the matter, the Tribunal was not justified in holding that the respondent/assessee is entitled to depreciation @ 20 per cent on the generator. We, accordingly, answer the first question in the negative, i.e., in favour of the Revenue and against the assessee. So far as the second question is concerned, we find that this Court in ITR 348 (All) has held that the generator is part of the machinery and plant and, therefore, entitled for investment allowance under s. 32A of the Act.;