1992 (5) TMI 50

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..... confirmed the order of the assessing officer passed under section 155(4A). It was submitted by Sh. Aggarwal that the assessing officer while passing the order under section 155(4A), has relied upon the decision of the Hon'ble Supreme Court in the case of Vania Silk Mills (P.) Ltd. v. CIT [1991] 191 ITR 647. It was submitted that the assessing officer was justified in withdrawing the investment allowance in respect of Degreasing plant, which was purchased in assessment year 1980-81, for an amount of Rs. 22,628 and which was sold in assessment year 1983-84 for a consideration of Rs. 10,000. He, however submitted that in respect of Blasting machine and Steel pipe rolling and welding straightening plant, which were purchased for a sum of Rs. 6, .....

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..... er section 45 as there was no transfer within the meaning of section 2(47) of the Act. It was submitted by Sh. Arun Kumar that the case of the assessee was distinguishable from the case of Vania Silk Mills (P.) Ltd. in so much so that in the present case the machinery in dispute was not destroyed by fire or some other accident but they were simply discarded by the assessee in assessment year 1983-84 and their scrap value was shown in the balance-sheet at Rs. 75,000 in respect of Blasting machine costing Rs. 6,50,000 and Rs. 15,000 in respect of Steel pipe rolling and welding straightening plant, as against Rs. 3,49,119. It was submitted that these machineries were subsequently sold in the following years but details of the same were not ava .....

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..... as in the present case, the machinery in respect of which the investment allowance granted earlier and withdrawn by the order passed by the assessing officer under section 155(4A) was discarded by the assessee on its own voilation and its scrap value taken at a nominal figure of Rs. 75,000 and Rs. 15,000 on an ad hoc basis. By discarding the above two items of costly machinery within an exceptionally short period of three years, the assessee is claiming, besides full cost of machinery, further sum of Rs. 2,55,436 being the investment allowance, by estimating the cost of the alleged discarded machinery at its own sweet-will, which if allowed, will be defeating the very purpose for which the provisions of section 155(4A) were enacted. By enac .....

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