SUHAS CHANDRA SEN,J. - (1.) MR . Sukumar Bhattacharjee, Advocate appearing on behalf of the assessee has submitted that the name of the assessee company has been changed from Davy Ashmore India Ltd. to Tata Ashmore Ltd. Let the change be recorded.
(2.) THE Tribunal has referred the following question of law to this Court under s. 256(1) of the IT Act, 1961 : "Whether, on the facts and in the circumstances of the case and having regard to the Supreme Court decision in the case of Indian Overseas Bank Ltd. vs. CIT reported in (1970) 77 ITR 512 (SC), the Tribunal was justified in law in holding that investment allowance under s. 32A of the IT Act should be allowed to the assessee although the provisions of s. 32A(4)(ii) of the IT Act were not complied with?" The assessment year involved is 1977-78 for which the relevant period of account is the year ended on 31st March, 1976.
(3.) THE Tribunal has found the following facts : "The reference relates to the point about non-allowance of investment allowance under s. 32A of the Act. The assessee was eligible for investment allowance under s. 32A of the Act. The assessee did not make specific reserve as required under s. 32A(4) of the Act. According to s. 32A(4)(ii) the deduction under the above section could not be allowed unless an amount equal to 75 per cent of investment allowance to be actually allowed was debited to the profit and loss account of the previous year and credited to investment allowance reserve account. The assessee came in appeal before the CIT(A) and took the additional ground by which it took objection against the non-allowance of investment allowance. The ground of the assessee was accepted. The assessee relying on CBDT Circular No. 305 dt. 12th June, 1981, read with Circular No. 249, dt. 11th July, 1979, urged that simply because the reserve was not created in the earlier year, the denial of investment allowance was not proper. The assessee had a genuine difficulty and, accordingly, the investment allowance should have been allowed to the assessee. The CIT(A) did not accept the argument of the assessee." ;