2009 (1) TMI 900 - HC - Income Tax

Appeal Dismissed for Investment Allowance Fulfillment Conditions

The appeal under section 260A of the IT Act, 1961 was filed against the Tribunal's judgment on investment allowance fulfillment conditions under section ... - Issues involved: Appeal u/s 260A of the IT Act, 1961 against Tribunal's judgment regarding investment allowance fulfillment conditions u/s 32A(4)(i).Summary:1. The appeal was filed against the Tribunal's judgment on ITA Nos. 363 & 370/Jd/2001 for the asst. yr. 1998-99, where the appeal by the assessee and Revenue was partly allowed for statistical purpose only. 2. The substantial question of law raised was whether the Tribunal was justified in allowing the investment allowance of Rs. 6,14,450 under s. 32A(4)(i) of the IT Act, despite the AO's disallowance due to lack of particulars of plant and machinery and investment allowance reserve creation. 3. The AO disallowed the claim of investment allowance citing lack of particulars and reserve creation, but the CIT(A) allowed the claim based on evidence provided by the assessee. 4. The Tribunal found that the assessee had provided necessary details of plant and machinery, and although the reserve was not initially created, it was done later and utilized accordingly, fulfilling the conditions of s. 32A(4)(i). 5. The Tribunal concluded that the CIT(A) rightly allowed the claim as both conditions of s. 32A(4)(i) were met by the assessee, based on the revised accounts submitted. 6. The Tribunal's finding was considered a finding of fact, and since no substantial question of law arose, the appeal was dismissed at the admission stage.7. The appeal lacked merit as no substantial question of law was identified, leading to its dismissal at the admission stage.