https://www.taxtmi.com/caselaws?id=12332 The High Court of Calcutta held that an assessee is entitled to an investment deposit allowance under section 32AB(1)(b) of the Income-tax Act even if new machinery purchased is not installed in the same assessment year. The Court emphasized that installation is not a prerequisite for claiming the deduction and referenced a Bombay High Court decision supporting the deductibility of expenses on machinery not installed due to business circumstances. The Court dismissed concerns of potential misuse, clarifying that fraudulent claims would not be protected. It also addressed situations where machinery is sold without installation, directing the deduction to be added to income in the subsequent year. The judgment favored the assessee, affirming their eligibility for the deduction. en-us Tue, 27 Aug 2002 00:00:00 +0530 Mon, 22 Feb 2010 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12332 The High Court of Calcutta held that an assessee is entitled to an investment deposit allowance under section 32AB(1)(b) of the Income-tax Act even if new machinery purchased is not installed in the same assessment year. The Court emphasized that installation is not a prerequisite for claiming the deduction and referenced a Bombay High Court decision supporting the deductibility of expenses on machinery not installed due to business circumstances. The Court dismissed concerns of potential misuse, clarifying that fraudulent claims would not be protected. It also addressed situations where machinery is sold without installation, directing the deduction to be added to income in the subsequent year. The judgment favored the assessee, affirming their eligibility for the deduction. Case-Laws Income Tax Tue, 27 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12332