Bhagabati Prasad Baneejee, J. - (1.) The following two questions of law have been referred to this court by the Tribunal under Section 256(1) of the income-tax Act, 1961 : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was an industrial company within the meaning of Section 2(7)(c) of the Finance Act, 1981. (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the Income-tax Officer to grant investment allowance in respect of a generator installed by the assessee-company."
(2.) The assessment year involved in this case is the assessment year 1981-82 for which the relevant period of account is the year ending on June 30, 1980.
(3.) The facts of this case, in short, are as follows : The assessee carries on the business of providing technical and industrial consultancy on the basis of computers and also undertakes electronic data processing. The Commissioner of Income-tax (Appeals) found it as a fact that "the services provided by the appellant are mainly arrived at with the help of computers and other ancillary machineries". In the instant case, technical and industrial problems are referred to the appellant- company which processes this information on the basis of inputs prepared from various types of data. These are thereafter fed into the computer which, through a series of programmes, generates the desired output as per the instructions of the programmes on a high speed printing machine on a preassigned format. Not only that the results are thus printed, the computer also handles the input data through its various types of machines such as magnetic tape drives or disc drives and stores the relevant data on magnetic tapes or discs. During the processing, it can sort out the input data on some relevant key and also can compare or compute through different types of instructions. In short, here is a process where inputs are processed and transformed into different outputs.;