Paripoornan, J.

1. At the instance of the Revenue, the Income Tax Appellate Tribunal has referred the following three questions of law, for the decision of this Court:

"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner of Income Tax (Appeals) who held that purchase tax of Rs. 2,86,436 was allowable as a deduction in the assessment ?

2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner of Income Tax (Appeals) who held that the entire business of the assessee was eligible for the allowance under S.80 J ?

3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner of Income Tax (Appeals) who held that the assessee was entitled to investment allowance on the diesel generator and transformer ?"

2. The respondent/assessee is a private limited company having the business of catching and purchasing fish, processing them and exporting them. We are concerned with the assessment year 1977-78, for which the accounting perio