Investment allowance on transformer denied where equipment was used in producing alcoholic drinks as part of the assessee's main business.

Investment allowance under section 32A was denied on a transformer used in producing alcoholic drinks because the issue was already covered by an earlier decision involving the same assessee and the same business activity. That prior ruling held that the transformer, purchased for use in the assessee's main business of producing alcoholic drinks, did not qualify for investment allowance. The present question was therefore answered in the negative and in favour of the Revenue, and the assessee was held not entitled to the allowance.

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Issues: Whether investment allowance under section 32A of the Income-tax Act, 1961 was admissible on a transformer used for the production of alcoholic drinks.

Analysis: The question stood covered by an earlier decision concerning the same assessee for an earlier assessment year, where it was held that a transformer purchased for use in the production of alcoholic drinks, being the assessee's main business, did not qualify for investment allowance under section 32A. In light of that binding decision, the controversy required no further reference for opinion.

Conclusion: The question was answered in the negative and in favour of the Revenue. The assessee was not entitled to investment allowance on the transformer.

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