2007 (8) TMI 256 - HC - Income Tax

Machinery purchased through bill dated December 15, 1988, was paid subsequently in the subsequent assessment year - Tribunal has recorded a finding that the assessee is maintaining his accounts in mercantile system and, therefore, in view of section 43(2) of the Act is entitled to the benefits under section 32AB of the Income-tax Act. The finding recorded by the Tribunal does not suffer from any manifest error of law

Summary

The High Court of Allahabad dismissed the appeal under section 260A of the Income-tax Act, 1961, filed by the Department against the order of the Income-tax Appellate Tribunal. The Tribunal allowed the assessee's claim for deductions under section 32AB for machinery purchased in the assessment year 1989-90, as the assessee maintained accounts in the mercantile system. The High Court found no error in the Tribunal's order and dismissed the appeal with costs.