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TMI Blog2005 (8) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal so as to merit interference - question referred for the opinion of this court is, therefore, answered in the affirmative, that is to say, the Tribunal was justified in confirming the order of the Commissioner of Income-tax (Appeals) - question is, accordingly, answered in favour of the assessee and against the Revenue - - - - - Dated:- 3-8-2005 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D.A. Mehta J.- The Income-tax Appellate Tribunal, Ahmedabad Bench "A", has referred the following question under section 256(1) of the Income-tax Act, 1961 ("the Act"), at the instance of the Commissioner of Income-tax, Surat. "Whether, on the facts and in the circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the Commissioner of Income-tax (Appeals), who upheld the claim of the assessee vide order dated March 23, 1988. The Tribunal dismissed the departmental appeal filed by the Revenue against the order of the Commissioner of Income-tax (Appeals). It has been found by the Tribunal that for being eligible to grant of investment allowance under section 32A of the Act it was not necessary for the assessee to establish that each item of plant and machinery should be directly used in the process of manufacturing. That once plant and machinery was used for the purpose of the assessee's business of manufacturing art silk cloth, it would become eligible for grant of investment allowance provided other conditions stand fulfilled. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a plant constituting a single unit for manufacturing. As can be seen from the findings recorded by the Assessing Officer there is no dispute as to the fact that the three items, on which investment allowance was not granted, are plant and machinery. Once the Revenue accepts that these items are plant and machinery, the limited question that would survive is whether the said items of plant and machinery are used for the purpose of the business of the assessee. On the positive side there is a concurrent finding recorded by the Commissioner of Income-tax (Appeals) and the Tribunal that these items constituted an integrated plant and are not items which can be operated independent of each other for the purpose of the business of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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