9911796707
Advanced Search 
TMI Blog2006 (1) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... n 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), for opinion to this court: "Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim investment allowance under section 32A on an expenditure amounting to Rs. 2,23,415 as held by the Tribunal?" The reference relates to the assessment year 1978-79. Briefly stated the facts giving rise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by the authorities below was incorrect and that the assessee was entitled to the investment allowance. It was pointed out that when the Department allowed depreciation and extra-shift allowance on the cost of the new furnace, the Department could not say that no new furnace was brought into existence and this finding was inconsistent. It was also pointed out that the Commissioner (Appeals) men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he alternative, he submitted that on the finding of the Commissioner (Appeals), the entire amount should be allowed as revenue expenditure. The Department opposed these contentions. The Tribunal after considering the arguments for and against the assessee and the record came to the conclusion that a new furnace was erected in place of the old one at a cost of Rs. 2,23,415. The Tribunal found supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) of section 32A of the Act. We have heard Shri R.K. Upadhyaya, learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent-assessee. Learned standing counsel submitted that the assessee had not installed any new furnace. It had only got the old furnace repaired and, therefore, was not entitled for investment allowance under section 32A of the Act inasmuch as no ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
