Ajit K. Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1978-79, the following question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in confirming the disallowance of investment allowance on tubewells and weighing machines ?"
(2.) The facts are in a narrow compass. In the original assessment, which was completed under Section 143(3) on September 24, 1982, the Inspecting Assistant Commissioner had disallowed the entire claim for investment allowance despite the fact that the appropriate investment allowance reserve had been created and that details of the plant and machinery were filed and were on record. In appeal, the Commissioner of Income-tax (Appeals) in his order dated February 23, 1983, held that the Inspecting Assistant Commissioner was not justified in withholding the investment allowance due to the appellant.
(3.) The Inspecting Assistant Commissioner, while giving effect to the order of the Commissioner of Income-tax (Appeals), by his order passed under Section 143(3)/251 dated January 18, 1985, disallowed the investment allowance on electrical equipment, air-conditioning machines, tube-well and weighing machines with the following observations : "It is necessary now to determine the quantum of investment allowance admissible to the assessee. Investment allowance was claimed, inter alia, on motors, underground cables, overhead cables, electrical installations, air-conditioning machines, tube-wells and weighing machines. The above are electrical machinery and/or are in the nature of additional equipments and accessories which do not take part in the actual task of manufacturing or processing. Electrical installations and machineries are contradistinguished from the actual plant of the assessee which manufactures paper. Law has treated electrical machinery and installations differently from plant inasmuch as no extra shift allowance is admissible on electrical installations whereas the same is allowable on genera! plant and machinery. In view of the above, I consider that the electrical equipment, air-conditioning machines, tube-wells and weighing machines" are in the nature of additional accessories which are not part and parcel of the actual paper-producing plant.";