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TMI Blog2014 (1) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... s i.e. acquisition and installation has to take place after the specific date for getting eligibility to additional depreciation - The machine was acquired after this date which is in any case after 31.3.2005 - From the Octroi receipt and bill of entry for showing date of entry of goods in the country by the Customs Department makes it clear that machine could be installed only after that date i.e. 11.4.2005 - the assessee has acquired and installed the machinery after 31.3.2005 – Thus, entitled to additional depreciation as per provisions section 32(1)(iia) of the Act – revisionary order quashed – Decided in favour of Assessee. - IT Appeal No. 505 (Chd.) of 2011 - - - Dated:- 10-5-2013 - SUSHMA CHOWL A AND T. R. SOOD , JJ. For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inspected the records and had no means to know whether audit objection was there or not and therefore, it was not correct on the part of assessee to raise the issue of initiation of revisionary proceedings in view of audit objection. On merits, he observed he observed vide para 2.6 as under:- "2.6 I have noted that the Terrot machine was acquired by the asessee vide LC dated 19.01.2005. Fukuhara machine was acquired by the assessee vide LC dated 20.01.2005. The invoice No. 9037 dated Feb. 23, 2005 of Fukuhara Industrial and Trading Co. Ltd. Japan is about the two sets of Fukuhara Circular Knitting Machines. This is (CIF ICD LUDHIANA). There is commercial advice with invoice No. 31810 dated 10.02.2005 and has been sent to Ludhiana via ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 2005, is not fulfilled as the first limb of this condition regarding acquired has not been fulfilled. Hence, I reject all the arguments advanced by the AR in this regard and conclude that the AO's action in allowing this deduction has resulted into an erroneous order which has caused prejudice to the Revenue. The assessment on this issue is set-aside to be done denovo after giving proper opportunity to the assessee." 4. Before us, Ld. Counsel for the assessee referred to various documents and submitted that enquiries were made by Assessing Officer in respect of this item and replies were duly given by the assessee. He particularly referred to page 43 of the paper book, which is copy of the invoice of Fukuhara Circular Knitting Mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery has been acquired after 31.3.2005. In case before us, the machinery was acquired in the month of February 2005 and the invoices have been made in the month of February, 2005, e.g. in case of Fukuhara Circular Knitting Machine the invoice No. 9037 was dated February 23, 2005, a copy of which is placed t page 43 of the paper book. It has not been denied that assessee had opened irrevocable L/Cs and payment was made accordingly. Then, he referred to Section 20 of the Sales of Goods Act, 1930 which provides that where there was an unconditional contract of sale of specific goods in a deliverable state, the property in such goods passes to the buyer when the contract is made, and since the assessee has acquired the property before 31.3.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h assessee become eligible for additional depreciation was required not only to be acquired but also installed after a particular date i.e. 31.3.2005. Significantly, between the words acquired and installed, the conjunction used is 'and' and not 'or' which means both the conditions i.e. acquisition and installation has to take place after the specific date for getting eligibility to additional depreciation. In the case before us, no doubt the machinery has been invoiced by the Japnese Company on 23.2.2005 against the L/c which was opened in January, 2005. This means the payment was made somewhere in January or February 2005 depending upon the terms of the L/c but the invoice has been marked as CIF which means cost up to shipping, insurance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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