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TMI Blog2005 (1) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Tribunal was justified in law in holding that the assessee was entitled for investment allowance under section 32A(8B) amounting to Rs. 36,18,035 on the new solvent extraction plant?" The assessee (respondent herein) is a limited company. The question involved in this reference relates to the assessment year 1989-90 of which the previous year is from January 1, 1988, to March 31, 1989, i.e., 15 months. The assessee claimed that they have installed a new solvent extraction plant of 200 mt. per day capacity during the period April, 1987, to January, 1988. According to the assessee, production in the plant began from March 9, 1988. The assessee claimed the benefit of what is called investment allowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tual aspect of the case which has a bearing over the question. It is for the reason that no question on that issue is framed or prayed by the Revenue or referred to this court for answer. In other words, the manner in which the question is referred to us for answer, it has to be answered in favour of the assessee and against the Revenue. It is for the reason that the question referred does not entitle or/and empower this court to even examine the factual finding returned by the Tribunal in favour of the assessee. As a matter of fact, the question, whether the assessee is entitled to claim the benefit of investment allowance or not was dependent upon the basic question whether the assessee has fulfilled the criteria evolved/prescribed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation under section 66(1) expressly raising the question about the validity of the findings of fact, he is not entitled to urge before the High Court that the findings are vitiated for one reason or the other." While approving the aforesaid principle of law, their Lordships in a later decision in Hazarat Pirmahomed Shah Saheb Roza Committee v. CIT [1967] 63 ITR 490 (SC) made following observations on the powers of this court: "It was pointed out by this court in India Cements Ltd. v. CIT [1966] 60 ITR 52 that in a reference under section 66 of the Act the High Court must accept the findings of fact made by the Appellate Tribunal, and it is not open to the High Court to reopen the findings of fact unless the party concerned has applied for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed before the High Court in the manner set out above, the High Court is obliged to proceed upon the findings of fact reached by the Tribunal and to give an answer in law to the question of law that is before it. The only jurisdiction of the High Court in a reference application is to answer the questions of law that are placed before it. It is only when a finding of the Tribunal, on fact, is challenged as being perverse, in the sense set out above, that a question of law can be said to arise." In the light of the aforementioned settled principle of law, we cannot, rather, we are not permitted to examine the factual finding recorded by the Tribunal in favour of the assessee holding that they have satisfied the factual conditions required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the Act emanates from the question referred and its wording. Coming to the facts of this case, we have to proceed on the basis that the factual finding recorded by the Tribunal is binding on us because it is not challenged in this reference by the Revenue. It is noticed that the Tribunal has in clear terms recorded a factual finding that the assessee has fulfilled the necessary requirements for claiming the benefit of investment allowance. In this view of the matter, the only necessary consequence that flows is that assessee has to be held entitled to claim the benefit of investment allowance within the meaning of section 32A(8B). Indeed, once on the facts it is held that the assessee has fulfilled the required criteria, then conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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