ORDER
1. The Income Tax Appellate Tribunal, Allahabad, has referred the following question of law under Section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for opinion to this Court:
Whether, on the facts and in the circumstances of the case, learned Tribunal was justified in holding that the asses see-company is entitled to investment allowance under Section 32A of the Income Tax Act, 1961 ?
2. The reference relates to the assessment year 1980-81. The respondent-assessee is a State Government concern and is assessed at the status of a Corporation. It is engaged in undertaking construction activities. It claimed investment allowance on plant and machinery under Section 32A of the Act which was disallowed by the assessing officer. However, in appeal, the appellate authority had directed the assessing authority to allow the investment allowance which order has been upheld by the Tribunal.
3. We have heard Shri A.N. Mahajan, the learned Counsel for the revenue. Nobody has appeared on behalf of the respondent-assessee.
4. In view of the decision of the Apex Court in the case of CIT v. NC Budharaja & Co. wherein it has been held that an undertaking engaged in the construction activities does not answer the expression of the industrial undertaking nor they produce any article or thing so as to entitle the investment allowance under Section 32A of the Act, the respondent-assessee is not entitled for investment allowance.
5. We, accordingly, answer the question of law referred to us in negative, i.e., in favour of there revenue and against the assessee. However, there shall be no order as to costs.