COMMISSIONER OF INCOME TAX, MADRAS vs M/S. LUCAS T.V.S. LTD. PADI CHENNAI

The Supreme Court addressed the issue of investment allowance under Section 32A of the Income Tax Act, 1961, determining that the allowance can be granted across multiple assessment years as per Section 43A(1). The Court upheld the decision of the Tribunal and the Madras High Court, which had ruled in favor of the assessee, allowing the investment allowance for the assessment years 1989-90, 1991-92, and 1992-93. The judgment reinforces the interpretation that investment allowance is not restricted to a single assessment year.