Commissioner of Income-tax Vs. Mercantile Credit Corporation Ltd. - Court Judgment

SooperKanoon Citationsooperkanoon.com/815889
SubjectDirect Taxation
CourtChennai High Court
Decided OnFeb-14-2001
Case NumberT.C. No. 588 of 1988 (Reference No. 452 of 1998)
JudgeR. Jayasimha Babu and ;K. Gnanaprakasam, JJ.
Reported in[2001]252ITR87(Mad)
ActsIncome-tax Act, 1961 - Sections 32A
AppellantCommissioner of Income-tax
RespondentMercantile Credit Corporation Ltd.
Appellant AdvocateT. Naresh Kumar, Adv.
Respondent AdvocateP.P.S. Janarthana Raja, Adv.
Excerpt:
- k. gnanaprakasam, j. 1. at the instance of the revenue, the following question has been referred to us : 'whether, on the facts and in the circumstances of the case, the appellate tribunal was correct in law in holding that the assessee was entitled to investment allowance even though there is no activity of manufacturing or production of any article by the assessee ?' 2. a similar question came to be decided by this court in cit v. s. devaki : [2000]244itr669(mad) , wherein the question has been answered in favour of the assessee and against the revenue. 3. applying the principles laid down in the abovesaid decision, we also answer the question referred to us in favour of the assessee and against the revenue.
Judgment:

K. Gnanaprakasam, J.

1. At the instance of the Revenue, the following question has been referred to us :

'Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the assessee was entitled to investment allowance even though there is no activity of manufacturing or production of any article by the assessee ?'

2. A similar question came to be decided by this court in CIT v. S. Devaki : [2000]244ITR669(Mad) , wherein the question has been answered in favour of the assessee and against the Revenue.

3. Applying the principles laid down in the abovesaid decision, we also answer the question referred to us in favour of the assessee and against the Revenue.