TaxTMI 
TaxTMI 
2011 (4) TMI 5
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....ed by the order passed by the Income-tax Appellate Tribunal in M.P. No. 238/Mum/03 and confirm the order dated 28-4-2003 in ITA No. 7849/Bom/1989, dated 15-6-2006 wherein the order passed by the Tribunal on 28-4-2003 has been modified and complete relief has been granted to the assessee raising the following substantial questions of law: "1. Whether the Tribunal was correct in proceeding to exercise jurisdiction under section 254(2) of the Act in proceeding to hold that the earlier order dated 28-4-2003 requires rectification proceeded to re-appreciate the various controversies raised by the assessee and granted relief which had not been granted earlier which will amount to review of its earlier order? 2. Whether the Tribunal was correct in holding that the relief declined by the Tribunal in its order dated 28-4-2003 under sections 80HH and 80-I of the Act on the ground that the industrial undertaking and the machinery and plant had been installed in the earlier assessment year and not a new unit in the current assessment year for claiming deduction can be reversed by holding that these were new units by relying on certain judgments of various courts? 3. Whether the Tribun....
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....80-I. Being aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals), which appeal also came to be dismissed by the Commissioner of Income-tax (Appeals). Aggrieved by the concurrent findings of the Assessing Officer and Commissioner of Income-tax (Appeals), an appeal was preferred before the Income-tax Appellate Tribunal, Bangalore. The Tribunal at the first instance dismissed the claim of the assessee under section 80HH by its order dated 28-4-2003, thereafter on an application filed by the assessee under section 254 of the Act came to the conclusion that the assessee has established a new industrial unit and it has used only a few old machineries. Therefore, the Tribunal came to the conclusion that the assessee is entitled to claim the deduction under sections 80HH and 80-I. It also came to the conclusion that the value of the old machineries used was less than 20 per cent of the value of the new machineries. Therefore, the relief was granted. Being aggrieved by the order of the Tribunal, the present appeal is filed. 8. The main contention of the learned counsel for the revenue is that the Tribunal has commit....
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....as granted relief as if the industrial unit had commenced its activities only in the relevant assessment year and that the value of the old machineries is less than 20 per cent of the total value of the machineries in the plant. Therefore, he contends that the order of the Tribunal is perverse and liable to be set aside. 10. Per contra, Smt.Anuradha contends that even if the Assessing Officer had considered the unit as only a modernization of the existing unit since new machineries are added to the existing plant considering the value of the new machineries and using of the old machineries, the assessee is entitled to claim deduction under sections 80HH and 80-I since the value of the old machineries was less than 20 per cent. According to her, the assessee has fulfilled all the terms and conditions of the provisions of sections 80HH and 80-I. She further contends that by using new machineries the assessee has commenced the production of new product known as Industrial Vanaspathi. Therefore, she contends that the Tribunal was justified in reversing the finding of the Commissioner of Income-tax (Appeals) as well as the Assessing Officer. In order to support her claim she has reli....
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....ies during relevant assessment year. If the Assessing Officer relying upon the letter of the assessee has come to the conclusion that the machineries were installed in the earlier assessment year whether it is possible for this court to hold that the machineries installed are new one when the machineries are erected in the earlier assessment year and when it had commenced its business activities. Though the assessee claimed that it was a trial, the finding of the Assessing Officer is other way. The Assessing Officer has also come to the conclusion that the new machineries purchased are only SCD plants and Haize Boiler and the remaining are old one. On facts, the Assessing Officer has also come to the conclusion either the SCD plants or Haize Boiler cannot be considered as the machineries manufacturing Industrial Vanaspathi. According to him, these plants are used only for de-odouring which is the last stage in the manufacturing of Vanaspathi. Considering the value of the old machineries and the SCD plant and Haize Boiler installed on 25-6-1983 still the Assessing Officer has come to the conclusion that the value of the old machineries other than these two machineries was more than ....