9911796707
TMI Blog2002 (7) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... firmative in favour of revenue - - - - - Dated:- 19-7-2002 - Judge(s) : M. S. SHAH., K. A. PUJ. JUDGMENT The judgment of the court was delivered by M.S. SHAH J.- Both these appeals are directed against the common judgment and order dated January 25, 2002, of the Income tax Appellate Tribunal, Ahmedabad, in I.T.A. Nos. 4146 and 4147/A of 1996. The appellant had purchased certain machineries and installed the same. We are informed that the machineries were installed in the previous year relevant to the assessment year 1984-85. The appellant claimed investment allowance on the said plant and machineries. Since the income of the appellant was not sufficient for availing of the entire investment allowance, the appellant also claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the said order of the Commissioner before the Income tax Appellate Tribunal in the above numbered appeals. The Tribunal accepted the submission of the Revenue and allowing the appeals of the Revenue, set aside the order of the Commissioner of Income tax (Appeals) and restored the order of the Assessing Officer. At the hearing of these appeals, Mr. S.N. Soparkar, learned counsel for the appellant, has submitted that the Tribunal has substantially erred in law in holding that even though the machineries were sold after the date of filing of the return, since the transfer took place before the Assessing Officer passed the assessment orders for the relevant years, it was the primary duty of the assessee to disclose the primary fact regardin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. There is also no dispute about the fact that the transfer took place after the date of filing of the return but before the Assessing Officer passed the original assessment order. In fact, the transfer is stated to have taken place in the year 1986 and the original assessment order for assessment year 1984-85 was passed on March 31, 1987. No fault can be found with the Tribunal's view that it was the duty of the assessee to disclose this fact of transfer before the Assessing Officer in the course of the original assessment proceedings. Learned counsel for the appellant has heavily relied on the aforesaid decision of the Bombay High Court and submitted that the facts in the said case were identical to the facts of the present case and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt. When the provisions of section 32A under which the investment allowance was claimed by the assessee, particularly sub-section (5)(a) thereof, clearly provide that any allowance made under section 32A in respect of any machinery or plant shall be deemed to have been wrongly made for the purpose of the Act. If the machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, it clearly casts a duty on the assessee to inform the Assessing Officer about the transfer of the machinery or plant, on which investment allowance has been claimed or its carry forward has been claimed in the return, if such transf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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