- (1.) This is a reference raised at the instance of the Department in respect of the assessment year 1983-84.
(2.) The question raised is a single one and it is set out below : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the Commissioner of Income-tax was not right in withdrawing the depreciation and investment allowance allowed to the assessee in respect of the plant and machinery installed at Srinagar and Hyderabad ?"
(3.) In regard to both the depreciation and the investment allowance, two units of the assessee were under review. One was at Jammu and Kashmir and another at Hyderabad. On the basis of the director's report, the Commissioner of Income-tax (Appeals) found that the plant at Srinagar had gone into trial production during the assessment year, although not into commercial production. The said Commissioner, however, did not take a similar view with regard to the Hyderabad unit. On a further consideration of the facts before the Tribunal, however, the Tribunal came to the conclusion that even with regard to the Hyderabad unit, the machinery installed there had gone into trial production although not, once again, into commercial production.;