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 by the Tribunal for the assessment years 1978-79 to 1980-81 and 1982-83:"whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that investment allowance under Section 32a of the Income-tax Act, 1961, was allowable on the machinery used by the assessee for boring operation for extracting water from underground ?"

( 2 ) THE assessee, a limited company, had been carrying on coal mines and boring operations. After nationalisation of the coal mines, the assessee-company had been carrying on business of boring operations for extracting water from underground. The assessee had claimed investment allowance under Section 32a in respect of its machinery used in boring operations. It is not in dispute that the machinery are new. The dispute relates to the question whether the plant and machinery used for boring to extract Sub-soil water would be eligible for investment allowance under Section 32a. The Assessing Officer held against the assessee as, according to him, boring and drawing Sub-soil water is n

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