- (1.) This income tax reference arising out of R.A. No.200/JP/93 is directed against the order of Income Tax Appellate Tribunal, Jaipur Bench, Jaipur dated 28.1.1994 for relevant assessment year is 1986-87.
(2.) The following questions of law under Section 256(1) of the I.T. Act has been referred to by the Tribunal for consideration of this Court:- "Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in allowing the claim for investment allowance u/s 32A on the ground that the preparation of food articles in a hotel may be treated as manufacturing of goods?"
(3.) The brief facts as emerging on the face of record are that the respondent assessee is running a hotel at Jaipur in the name of Hotel Mansingh and at the relevant point of time, the hotel operation was managed by the ITC Ltd. in terms of the agreement, which was renewed from time to time. The short controversy is as to whether preparation of food articles in the hotel can be said to be manufacturing of goods and consequently as to whether the assessee is entitled for investment allowance under Section 32A of the Act; while the claim of the assessee was that it enures for investment allowance under Section 32A of the Act as preparation of food articles and serving the same to the hotel guests and others is definitely manufacturing and in terms of Section 32A the assessee is entitled to claim the investment allowance on the said articles.;