9911796707
TMI Blog1983 (8) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The assessee deals in and manufactures cameras. During the accounting year relevant to the assessment year 1963-64, the assessee purchased second hand dies of the value of Rs. 42,490 out of which it wrote off a sum of Rs. 31,867 during the same accounting year. The dies had been purchased for manufacturing cameras with American collaboration, but these cameras, when so produced, were found to be defective. According to the assessment order, the assessee admitted that nothing but trial samples were taken out from these dies. The ITO, therefore, concluded that the dies could not be said to have been used in the assessee's business and disallowed the claim in respect of the amount so written off. The ITO's decision was upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set of the assessee. There being no provision in the Act enabling the write-off that had been claimed by the assessee, the Tribunal reversed the order of the AAC. The assessee then sought a, reference of the question that we have quoted above. An argument was advanced before us by the learned counsel for the assessee that, admittedly, was not advanced before the Tribunal. It was pointed out by her that the dies were purchased by the assessee secondhand and that they had been found to have been used by the assessee in the manufacture of cameras during the previous year. Emphasis was laid upon the words in parenthesis in s. 32(1)(iii), viz., " (other than the previous year in which it is first brought into use) It was submitted that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account could be taken only of when the assessee had first brought the dies into use. Mr. Joshi cited a judgment of the Supreme Court in Liquidators of Pursa Limited v. CIT [1954] 25 ITR 265 (SC). It was held there that the machinery or plant in respect of which allowance was claimed must be used for the purpose of the assessee's business and for the purpose of earning profits therein. In the instant case, the Tribunal has come to an unequivocal finding that the dies were utilised by the assessee in the manufacture of cameras during the previous year. Having regard to this finding, the authority that Mr. Joshi relied upon does not assist us. We are impressed by the argument of counsel for the assessee that s. 32(1)(iii) does not in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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