AJIT K. SENGUPTA , J.

( 1 ) IN this reference under Section 256 (1) of the Income-tax Act, 1961, the following question of law has been referred to this court for the assessment year 1981-82 :"whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that preparation of food in the hotel constituted manufacture or production of any article or thing within the meaning of Section 32a of the Income-tax Act, 1961, and, in that view, the assessee was entitled to get investment allowance under that section ?"

( 2 ) SHORTLY stated, the facts are that the assessee-company runs a five star hotel in Calcutta under the name and style of Hotel Hindusthan International. Before the Income-tax Officer, the assessee-company claimed investment allowance under Section 32a of the Income-tax Act, 1961, amounting to Rs. 5,78,500 on plant and machinery installed during the accounting year.

( 3 ) A reserve of Rs. 3,75,000 was created for this purpose. The Income-tax Officer was of the view that the hotel was not entitled to investment allowance and, for the reasons discussed in the last year's assessment order, the Income-tax Officer disallowed the assesse

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