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[2009] 311 ITR 372 (Delhi)/[2008] 216 CTR 264 (Delhi) [2008] 216 CTR 264 (DELHI) HIGH COURT OF DELHI Commissioner of Income-tax v. Dr. Yogendera Sharma MADAN B. LOKUR AND V.B. GUPTA, JJ. IT REFERENCE NO. 193 OF 1988 APRIL 11, 2008 Section 32A of the Income-tax Act, 1961 - Investment allowance X-ray machine X-ray machine installed in x-ray clinic is not eligible for investment allowance. J.R. Goel for the Petitioner. Ms. Kavita Jha and Sandeep S. Karhail for the Respondent. JUDGMENT Madan B. Lokur, J.:- In this reference under section 256(1) of the IT Act, 1961 (for short 'the Act'), the following question of law has been referred for our opinion: "Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in directing the ITO to grant investment allowance to the assessee in terms of section 32A of the IT Act, 1961?" 2. The assessee is a practicing radiologist and he had installed an X-ray machine on which he claimed a deduction by way of an investment allowance under section 32A of the Act. This was disallowed by the AO and also by the CIT(A). However, the Income-tax Appellate Tribunal (for short 'the Tribunal') while relying upon an order passed by the Nagpur Bench of the Tribunal in some other case came to the conclusion that the assessee was entitled to the deduction under section 32A of the Act. It is in these circumstances that the present reference is made to this Court. 3. It is not clear from the statement of the case whether the assessee had purchased the X-ray machine for installation in his clinic or somewhere else. Learned counsel for the parties say that we may proceed on the basis that X-ray machine was installed in the clinic of the assessee. 4. Sec. 32(A)(1) of the Act provides that an assessee may claim a deduction (under certain conditions) in respect of machinery or plant specified in sub-section (2), which is owned by the assessee and is wholly used for the purposes of the business carried on by him. 5. Sec. 32A(2) of the Act provides that the machinery or plant referred to in sub-section (1) would, inter alia, be the following namely: "any new machinery or plant installed after 31st March, 1976 in a small…

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