TMI Blog1993 (7) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... owance under section 32A(2)(iii) of the Income-tax Act, 1961 ?" The respondent/assessee is a limited company. It is running a clinical laboratory, X-ray unit and pharmacy. We are concerned with the assessment years 1980-81 and 1983-84. The assessee claimed investment allowance under section 32A(2) of the Income-tax Act for the X-ray plant installed during the relevant accounting year. The Income-tax Officer declined to grant the relief for both the years. According to him, the X-ray plant is not used for the production or manufacture of a thing or article. The assessment orders are dated July 21, 1981, and April 25, 1984. The appeal filed before the Commissioner of Income-tax (Appeals), for the year 1980-81, was disposed of on August 23, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N. R. K. Nair, as also counsel for the respondent/assessee, Mr. P. G. K. Warriyar. According to counsel for the Revenue, the Commissioner of Income-tax (Appeals) as also the Appellate Tribunal erred in placing reliance on the decision of the Special Bench of the Tribunal in Dr. P. Vittal Bhat's case [1984] 16 Taxman 8, wherein the scope of section 32A(2)(b)(ii) of the Act alone came up for consideration. Counsel for the Revenue submitted that, under section 32A(2)(b)(iii) read with item No. 10 of the Eleventh Schedule, the assessee will be disentitled to investment allowance. We shall extract section 32A(1), 2(b)(ii) and (iii) and the Eleventh Schedule, item No. 10, of the Income-tax Act : 32A. (1) In respect of a ship or an aircraft or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 32A(2)(b)(ii) of the Act, as is evident from paragraph 14 of the order. The Tribunal posed the question as to whether there was a manufacture or production of an article or thing as the expression is used in section 32A(2)(b)(ii) of the Act. There is a substantial difference between section 32A(2)(b)(ii) and (iii). The question referred to this court is whether the assessee is entitled to investment allowance under section 32A(2)(b)(iii) of the Income-tax Act. There is no case nor is it discernible from the papers that the assessee is a small-scale industrial undertaking. So, obviously, section 32A(2)(b)(ii) is inapplicable. The question referred to this court also proceeds on the basis that the plea of the assessee is one based on sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act, since in referring the question of law to this court under section 256(1) of the Act the Tribunal has in terms referred to section 32A(2)(b)(iii) of the Income-tax Act. Prima facie, the decision of the Special Bench of the Tribunal in Dr. P. Vittal Bhat's case [1984] 16 Taxman 8 may not be an authority to hold that the assessee is entitled to investment allowance under section 32A(2)(b)(iii) of the Act. The Tribunal was probably under the impression that in Dr. P. Vittal Bhat's case [1984] 16 Taxman 8, the above provision of law was considered or explained. It is not so. Since the order of the Tribunal is vague and we are not in a position to know under what statutory provision of law the entitlement of the investment allowa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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