1987 (1) TMI 59

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....3 was rightly held entitled to investment allowance under section 32A of the Income-tax Act. The assessee is carrying on the business of a hotel and the question is whether this falls under the terms of section 32A. In view of the divergence of opinion in various judicial decisions referred to in the order of the Tribunal, we think that this is question of law which calls for reference. We, theref....

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....ned that while the Tribunal in the order for 1980-81 (ITC No. 161/1986) discussed the question as to whether a hotel business is entitled to investment allowance in the other two years, it apparently refused to deal with this question raised before it by the Revenue as the question did not arise out of the order of the first appellate authority. The question raised above is, therefore, relevant fo....

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....tion which is raised only in ITCs Nos. 44 and 45 of 1986 is whether the assessee is disentitled to the investment allowance scheme because no requisite reserve has been created by the assessee-company before the close of books of the relevant previous year. On this, the finding is that the requisite " reserve " has been created by holding a second annual general meeting of the members of the compa....