PRAKASH KRISHNA, J.

( 1 ) THE Tribunal, Delhi, at the instance of the assessee has referred the following question of law under Section 256 (1) of the IT Act, 1961 (hereinafter referred to as the Act), for opinion to this court:

"whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that it was obligatory for the assessee to have machinery and plant and that it had failed to establish that it had installed machinery and plant for the purposes of the business of the undertaking within the meaning of Clause (2) of the Explanation below Sub-section (2) of section 32a of the IT Act, 1961 ?"

( 2 ) THE asst. yr. 1979-80 is involved in the present reference. The assessee is an exporter and is engaged in the business of brass art wares consisting of bell sets, wind chimes, iron bells, candle stands, etc. It claimed itself as manufacturer of these items. The claim of the assessee for weighted deduction under Section 35b of the Act on a total expenditure of Rs. 1,60,248 was disallowed by the ITO. According to the assessee, it is as small scale exporter and is entitled to the benefit under Section 35b (1a ). Section 35b was amended by insertion

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