JUDGMENT

Dr. Arijit Pasayat, J. —

1.Leave granted.

2.Challenge in these appeals is to the order passed by a Division Bench of the Madras High Court dismissing the Tax Case Appeals as according to the High Court the case at hand is covered against the revenue in view of the order passed earlier by the High Court in Southern Asbestos Cement Ltd. v. Commissioner of Income Tax (259 I.T.R. 631).

3.These appeals relate to assessment years 1989-90, 1991-92 and 1992-93. The core issue is the allowability of investment allowance under Section 32A of the Income Tax Act, 1961 (in short the Act). The assessing officer was of the view that it is only to be allowed in one assessment year and not several assessment years. The Tribunal and the High Court appear to have proceeded on the basis that in view of Section 43A(1) of the Act the allowance was to be granted in different assessment years.

4.Sections 32A and 43A(1) of the Act read as under:

Section 32A- INVESTMENT ALLOWANCE.

(1)In respect of a ship or an aircraft or machinery or plant specified in sub-section (2), which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with