1999 (5) TMI 6 - SCH - Income Tax

Whether, the Income-tax Appellate Tribunal was correct in law in allowing investment allowance under section 32A of the Income-tax Act, 1961, on the excavator, which was used for excavation of earth at site - Whether, the Appellate Tribunal is correct in holding that the Assessing Officer cannot verify which machinery was used for contract work in proceedings under section 154 - Tribunal to state the case and refer the abovee two questions of law to HC

Summary

The Supreme Court granted special leave and directed the Tribunal to refer two questions of law to the High Court regarding investment allowance under section 32A of the Income-tax Act and the Assessing Officer's verification of machinery used for contract work. The appeal was allowed, the High Court's order was set aside, and the application under section 256(2) of the Income-tax Act was allowed.