TMI Blog1988 (5) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment allowance reserve at the rate of 25 per cent on the following machinery and plant: (1) Machinery Rs. 1,60,831 (2) A.C. Plant Rs. 40,089 (3) Generator Rs. 2,324 (4) Electric Fittings Fixtures Rs. 26,927 (5) Plaster of Paris Rs. 48,043 (6) Furniture (Cinema Chair) Rs. 1,19,919 (7) Accoustic Rs. 67,291 . Rs. 5,35,424 As was stated at Bar by Mr. J.P. Shah, the learned Counsel for the assessee before us, the ITO allowed investment allowance at the rate of 25 per cent on machinery and plant mentioned at Sl. Nos. 1 to 4 above, worth Rs. 3,00,171 only. The assessee-firm carried th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of investment allowance in respect of intercom telephone is not admissible. In the decision in ITA No. 1779(Bom)/78-79 referred above, the Hon'ble Tribunal has held that the decorative fixtures, fittings on the walls and false ceilings are part of fixtures entitled to depreciation at 15 per cent. In other words, these are not considered as plant. Plaster of Paris comes under this category, being of the nature of decorative fixtures. Hence, expenditure on same cannot be held to be on 'Plant'. Investment allowance is not admissible on same." In the end, the learned CIT(A) issued directions to the ITO, in the following words: "The ITO is accordingly directed to allow Investment Allowance in respect of amount of Rs. 1,67,962 on bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have reconsider those points afresh. Mr. Shah submitted that while giving effect to the appellate order dt. 23rd Dec., 1982, neither the ITO, nor the learned CIT(A) sitting in appeal over ITO's order, could assume jurisdiction to undo what the CIT(A) had done while passing the order on 23rd Dec., 1982. Mr. Shah further submitted that the conditions which were required to be fulfilled for entitlement of allowance of deduction under s. 32-A in pursuance to the order of the CIT(A) dt. 23rd Dec., 1982, were those mentioned in sub-s. (4) of the said section. Mr. Shah pointed out that the ITO nor the learned CIT(A) has stated that the assessee had not fulfilled those conditions. The assessee-firm was, therefore, contended Mr. Shah, entitled to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oming to the merits of the case on hand, we are of the opinion that irrespective of the fact whether in passing his order on 23rd Dec., 1982, the learned CIT(A) has rightly or wrongly considered the furniture (Cinema Chairs) and accoustics as falling within the definition of the term "Plant" for the purpose of allowance of investment allowance, it was not open to the ITO to question the wisdom of the CIT(A) in giving effect to his said appellate order wherein the learned CIT(A) had specifically directed him to allow investment allowance in respect of an amount of Rs. 1,67,962 on being satisfied that the conditions for allowance of deduction under s. 32-A were fulfilled by the assessee as per provisions of law. The use of the phrase 'on bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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