9911796707
TMI Blog1978 (9) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... pment rebate as claimed while making the assessment. 3. The Commissioner was of the view that there was a mistake in the assessment as made for the year 1975-76 on 31st Oct., 1975 and the order was erroneous in-so-far as it was prejudicial to Revenue. According to the Commissioner, development rebate of Rs. 38,339 should not have been allowed in respect of the new offset machine purchased for Rs. 2,55,591. This was because the Commissioner stated that the machine was allegedly installed on 30th Mar., 1975 and not used in the accounting period which ended on 31st Mar., 1975. The Commissioner issued a notice to the assessee to show cause why he should not direct withdrawing the development rebate of Rs. 38,339 in the exercise of his powers u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would have had some effect on the production and there would have been consumption of energy and evidence in this regard should have been furnished and in the absence of the same he could not accept the mere statement of the assessee that the machine was actually used on the 30th and 31st March, 1975. Stress was placed on the fact that no depreciation was claimed and that was construed as additional evidence to show that the machinery was not actually used in the printing in the previous year ended 31st Mar., 1975. The explanation of the assessee that non-claimer of depreciation was due to oversight based on the old Rules was not found acceptable. The Commissioner, therefore, directed withdrawal of the development rebate of Rs. 38,339. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be tendered after a period of 2-1/2 years to show that the machine was operated for a period of two days, i.e., on 30th March, 1975 and 31st March, 1975. The machine was ready to be put into use and the assessee asserts that it was so used in the two succeeding days. Normally when a machine is installed and ready to go into use, the presumption is that it would have been utilised in the business unless there are some special reasons for not using it. There are no such reasons in the present case. Regarding enhanced consumption of energy for utilisation of machinery since the period involved was only two days, we consider that it would not be possible to find a significant variation in electrical consumption and even if there is a vari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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