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TMI Blog1983 (2) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... e are in a very short compass. Sanjeev Kumar, deceased, who was a partner in Liberty Enterprises, Karnal, died on 9-12-1978. Since in the said firm, there was an investment allowance reserve in an amount of Rs. 1,79,213, the Assistant Controller included a sum of Rs. 55,737 on account of share of the deceased in the said investment allowance reserve in computation of dutiable estate. 3. When the accountable persons carried the dispute in respect of the inclusion of said sum of Rs. 55,737 before the Controller (Appeals), he after recording the submissions made on behalf of the accountable persons, confirmed the action of the Assistant Controller. 4. It is this action of the Controller (Appeals) which is disputed by the accountable perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . C.L. Jain, on the other hand, relied on the order of the Assistant Controller in respect of which submissions made by the accountable persons before him (sic) and a finding of the Controller is available in para 2 of his order, which-read as under :--- " 2. For the sake of convenience, assessee's grounds of appeal No. 5 will be taken up first. In this ground of appeal, the appellant objects to the action of the ACED in including a sum of Rs. 55,737, being the deceased's share in the investment allowance reserve of the firm Liberty Enterprises, in the principal value of the estate. Sh. Goel, advocate, who appeared on behalf of the appellant, contended that under the provisions of section 32A of the Income-tax Act, the investment allowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of which investment allowance has been allowed cannot be stated to pass on the death of a partner of the appellant firm because such machinery or plant cannot be sold before the expiry of 8 years from the end of the previous year in which they were acquired. There is another way to look into the matter. The aggregate of the capital invested by the partners in a firm at any point of time, is the excess of the value of the assets over the liabilities of the firm. The investment allowance reserve does not represent any such liability and forms part of the capital invested by the partners in a firm. I have, therefore, no hesitation in holding that this sum of Rs. 55,737 was rightly included in the principal value of the estate." 6. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end of the previous year in which it was acquired or installed or (b) if at any time before the expiry of ten years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the assessee does not utilise the amount credited to the reserve account under sub-section (4) for the purposes of acquiring a new ship or a new aircraft or new machinery or plant other than machinery or plant of the nature referred to in clauses (a), (b) and (d) of the proviso to sub-section (1) for the purposes of the business of the undertaking ; or (c) and the provisions of sub-section (4A) of section 155 shall apply accordingly :" By mere reading of the above section in the Income-tax Act, it can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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