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Section 32A of the Income-tax Act, 1961 - Investment allowance - Assessment year 1978-79 - Whether tractor is not a road transport vehicle - Held, yes Words and phrases - Meaning of 'road transport vehicle' CASES REFERRED TO State of Madras v. Marshall Sons & Co. (India) Ltd. [1954] 5 STC 305 (Mad.) [Para 8], Airfreight Ltd. v. State of Karnataka [1999] 95 FJR 395 (SC) [Para 9], Davis v. Sebastian [1999] 6 SCC 604 [Para 9], Aspinwall & Co. Ltd. v. CIT [2001] 251 ITR 323/ 118 Taxman 771 (SC) [Para 10], State of Kerala v. V. Padmanabhan [2003] 129 STC 245 (SC) [Para 10] and Municipal Corporation of Greater Bombay v. Mafatlal Industries AIR 1996 SC 1541 [Para 11]. V.K. Rastogi and A.K. Rastogi for the Respondent. JUDGMENT M. Katju, J. - This is an income-tax reference under section 256(1) of the Income-tax Act, 1961, in which the following questions have been referred to us for our opinion : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the tractor was not a road transport vehicle ? 2. Whether the Tribunal was legally correct in directing the Inspecting Assistant Commissioner of Income-tax (Asst.) that the investment allowance should be allowed to the assessee according to the provisions of section 32A ?" 2. The assessee is a U.P. Government undertaking which had been established for industrial and agricultural development of Western U.P. The previous year for the relevant assessment year 1978-79 ended on June 30, 1977. 3. The assessee gave tractors on hire. These tractors were fitted with trolleys and they were exclusively used for hiring purpose by the assessee. The assessee claimed investment allowance on these tractors. 4. The Inspecting Assistant Commissioner did not allow the claim for investment allowance as he held that the tractor can be combined with a trolley and hence used as a transport vehicle. This decision was confirmed by the Commissioner of Income-tax (Appeals). On further appeal, the Tribunal has decided in favour of the assessee and held that the investment allowance should be allowed to it. 5. Section 2(30) of the Motor Vehicles Act, 1939, defined 'tractor' as follows :…

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