https://www.taxtmi.com/caselaws?id=237380 The High Court ruled in a case involving the assessment of investment allowance deduction under Section 32A(1) of the Income-Tax Act for the assessment year 1987-88. The appellant, a state-owned sugar factory, failed to meet the statutory requirement of maintaining a 75% reserve as mandated by the Act. The Court held that the appellant should create the reserve in subsequent years with positive income, rather than in the year of installation or use of the plant or machinery. Consequently, the Court set aside the Tribunal's order and directed the appellant to comply with the reserve requirement in future years with positive income. en-us Tue, 24 Sep 2013 00:00:00 +0530 Thu, 26 Sep 2013 12:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237380 The High Court ruled in a case involving the assessment of investment allowance deduction under Section 32A(1) of the Income-Tax Act for the assessment year 1987-88. The appellant, a state-owned sugar factory, failed to meet the statutory requirement of maintaining a 75% reserve as mandated by the Act. The Court held that the appellant should create the reserve in subsequent years with positive income, rather than in the year of installation or use of the plant or machinery. Consequently, the Court set aside the Tribunal's order and directed the appellant to comply with the reserve requirement in future years with positive income. Case-Laws Income Tax Tue, 24 Sep 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237380