SYED SHAH MOHAMMED QUADRI, J.

( 1 ) IN this reference case the assessee is carrying on hotel business . It claimed investment allowance under s. 32a of the IT Act, 1961, for short "the Act". The ITO negatived the claim of investment allowance on the ground that hotel business could not be treated as in industrial concern which was manufacturing an article or thing. The assessee carried the matter in appeal before the CIT (A ). The appellate authority took the view that the assessee was not entitled to investment allowance under s. 32a of the Act. He also opined that there was no manufacturing or processing activity and accordingly dismissed the appeal. Against the order of the first appellate authority two appeals were filed, one by the assessee and the other by the assessing authority. Those two appeals were disposed of by a common order dt. 18th Feb. , 1986. On the applications of the assessee as well as the Revenue, under s. 256 (1) of the Act, the following questions are referred to this Court for opinion :" (1) Whether, on the facts and in the circumstances of the case, the assessee is not entitled for investment allowance under s. 32a of the IT Act, 1961 in respect of plan

Click Here to Read the rest of this document