1995 (12) TMI 45

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....At the instance of the Department, the Tribunal has referred the undernoted question of law, under section 256(1) of the Income-tax Act, 1961, arising out of the order of the Tribunal dated July 30, 1986, passed in I. T. A. No. 527/(Ind) of 1984 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to investment a....

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.... Shri D. D. Vyas, learned counsel for the applicant Department, and Shri G. M. Chaphekar, learned senior counsel with Shri S. S. Samvatsar for the non-applicant-assessee. It is not disputed that a tube-well is an apparatus with equipment necessary for drawing water from subterranean sources and that water so drawn was necessary for production as also for industrial labour. Tube-well thus manife....

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....e reasons as aforesaid, we are unable to accept the contentions of the Revenue. We answer question No. 2 in the affirmative and also in favour of the assessee. " In view of the aforesaid factual matrix and legal position, we are satisfied that the Tribunal was right in law in holding that the assessee was entitled to investment allowance on the cost of the tube-well. In the result, we answer....