1. The revenue has come on appeal as against the order of the Income Tax Appellate Tribunal, Madras "B" Bench, Chennai, made in ITA No.1440/MDS/95 dated 20.04.2004.

2. The above appeal was admitted on 02.12.2004 on the following question of law:

"Whether on facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to investment allowance in respect of X-ray, ultra sound, angiography, gamma camera, stress analysis equipment etc.?"

3. The assessee is a public limited company engaged in the business of running hospital. The assessment year is 1989-1990 and the corresponding accounting year ended on 31.03.1989. The assessee filed a return of income on 29.12.1989 showing total income of Rs.82,36,600/- as per Section 115J of the Act. Later the assessing officer made prima facie adjustment under Section 143(1) (a) of the Act and sent an intimation dated 30.06.1990 to the assessee. In the course of the assessment proceedings, notice under Section 143(2) of the Act was issued and the assessing officer completed the assessment as per the normal provision and made addition and disallowed the investment allowance claimed under Section