High Court overturns Tribunal decision on investment allowance, upholds deduction for leave with wages. Refinery units classified as industrial undertakings.

The High Court set aside the Tribunal's decision on the allowance of investment and extra shift allowance on electric installations in Oswal Solvent Extraction Unit, directing a fresh adjudication. It upheld the Tribunal's decision on deduction for leave with wages, citing a previous case against the Revenue. The Refinery units at Ludhiana and Madras were classified as industrial undertakings for investment allowance and deduction under section 80J, in favor of the assessee. Both petitions were disposed of without costs.

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Issues:
1. Allowance of investment and extra shift allowance on electric installations in Oswal Solvent Extraction Unit.
2. Deduction on account of amount due for leave with wages.
3. Classification of Refinery units at Ludhiana and Madras as industrial undertakings for investment allowance and deduction under section 80J.

Issue 1:
The High Court considered the first issue regarding the allowance of investment and extra shift allowance on electric installations in Oswal Solvent Extraction Unit. The Tribunal had allowed the claim based on its previous order for the assessment year 1979-80. However, the High Court referred to its own order in a related case and set aside the Tribunal's findings, directing a fresh adjudication in line with its observations in the previous case. The High Court answered the question in favor of setting aside the Tribunal's decision and remanding the matter for fresh adjudication.

Issue 2:
Regarding the second issue of deduction on account of the amount due for leave with wages, the Revenue challenged the Tribunal's decision in favor of the assessee. However, the High Court noted that a previous decision in a related case had concluded against the Revenue on this matter. Therefore, the High Court answered this question against the Revenue, affirming the Tribunal's decision in favor of the assessee.

Issue 3:
The third issue involved the classification of Refinery units at Ludhiana and Madras as industrial undertakings for investment allowance and deduction under section 80J. The High Court had previously decided this issue in favor of the assessee in a related case for the preceding year. Consistently, the High Court answered this question in favor of the assessee and against the Revenue. Both petitions were disposed of accordingly, with no order as to costs in the circumstances of the case.

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