- (1.) HEARD learned counsel for the parties.
(2.) THIS is reference under Section 256(1) of the I.T. Act, 1961. Following two questions have been referred to this Court : - 1. Whether on the facts and in the circumstances of the case the Hon'ble I.T.A.T. was justified in holding that the assessee company is an industrial undertaking and also in holding that it was producing article or thing and thus eligible for investment allowance under Section 32A of the I.T. Act? 2. Whether on the facts and circumstances of the case for the assessment year 198182 the Tribunal was justified in holding that the sum of Rs. 9,20,886/ - was a revenue expenditure allowable under Section 37(1) of the I.T. Act?
(3.) AS per statement of facts, assessee is a subsidiary company of Coal India Ltd. and itself is also a public sector undertaking and carries on business primarily of mining consultancy and exploration. The assessee submitted return originally on 27.03.1981 disclosing net loss of Rs.7,08,073/excluding carry forward loss of earlier years of Rs.28,88,564/. Subsequently, the assessee filed a revised return on 08.02.1983 in which the assessee disclosed net business income of Rs.6,87,331/and after claiming carry forward loss of its earlier years of Rs.28,88,564/and investment allowance of Rs.22,80,000/and submitted return of net loss of Rs.44,81,233/.;