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TMI Blog2006 (9) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. Dr. N. L. Sharda for the Commissioner. JUDGMENT 1. The following question of law has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated July 28, 1995, in I. T. A. No. 636 of 1990, in respect of the assessment year 1988-89 "Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was right in law in coming to the conclusion that the debt raised from the bank for the purchase of plant and machinery, which remained unpaid during the accounting period, was not to be taken into account for purposes of allowing deduction under section 32AB of the Income-tax Act to the assessee ?" 2. The facts noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 32AB of the Act are extracted below: "32AB. (1) Subject to the other provisions of this section, where an assessee, whose total income includes income chargeable to tax under the head 'Profits and gains of business or profession', has, out of such income,— (a) deposited any amount in an account (hereafter in this section referred to as 'deposit account') maintained by him with the Development Bank before the expiry of six months from the end of the previous year or before furnishing the return of his income, whichever is earlier ; or (b) utilised any amount during the previous year for the purchase of any new ship, new aircraft, new machinery or plant, without depositing any amount in the deposit account under clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot on investments made by raising loans. Only possible conclusion is that the investment has to be from the income of the current year. The section does not visualise or postulate a position where the benefit under this provision can be availed of today even if the income which the assessee may or may not earn in future years. There is no denying the fact that every year is independent and has to be assessed independently. In case, deduction is allowed in the manner suggested by the assessee, that would amount to distortion in the determination of income for the current year and will not be in consonance with the scheme of taxation and grant of benefits. 7. In Antifriction Bearings Corporation Ltd.'s case [2000] 246 ITR 295 (Bom), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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