Appellate order binding on assessing officer: investment allowance allowed on cinema chairs and acoustics as plant.

An assessing officer giving effect to an appellate order cannot reopen issues already concluded by the appellate authority and must implement those findings unless a new and independent statutory defect is shown. The appellate authority had treated cinema chairs and acoustics as plant for investment allowance purposes, subject to section 32-A conditions, and no fresh factual basis was shown to deny the claim on those same items. The officer therefore exceeded jurisdiction in refusing the allowance, and relief was granted by directing investment allowance on the specified assets.

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Issues: Whether the Income-tax Officer, while giving effect to an appellate order, could reopen and reconsider matters already decided by the appellate authority, and whether the assessee was entitled to investment allowance on cinema chairs and acoustics as plant.

Analysis: The appellate authority had already determined that the cinema chairs and acoustics answered the description of plant and were eligible for investment allowance, subject to the statutory conditions under section 32-A being satisfied. While implementing that order, the Income-tax Officer was bound by the appellate directions and had no authority to sit in judgment over the issues already concluded. No fresh factual basis was shown to deny the allowance on the same items that had been decided in the assessee's favour earlier.

Conclusion: The Income-tax Officer exceeded his jurisdiction in refusing the allowance, and the assessee was entitled to investment allowance on the cinema chairs and acoustics.

Final Conclusion: The order under appeal was set aside and relief was granted to the assessee by directing allowance of investment allowance on the specified items.

Ratio Decidendi: An assessing authority giving effect to an appellate order cannot reopen issues already concluded by the appellate authority, and must implement the appellate findings unless a new and independent statutory defect is shown.

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