2012 (9) TMI 267 - SCH - Income Tax

Disallowance of investment allowance u/s 32A - Held that - Whenever assessee claims investment allowance under Section 32A it has to lead evidence to show that the process undertaken by it constitutes production - as the assessee has not led evidence before AO as to the exact nature of activities undertaken by it in the course of mining, polishing and export of granites the case is remitted back to AO giving opportunity to the assessee to produce relevant evidence.

Summary

The Supreme Court set aside the judgment of the High Court and Tribunal in a case involving investment allowance under Section 32A of the Income Tax Act, 1961. The court remitted the case to the Assessing Officer for further inquiry, directing the assessee to produce relevant evidence within three months. The civil appeals were disposed of with no order as to costs.