2005 (2) TMI 12

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....habad has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for opinion to this court: "1. Whether the Tribunal was legally correct in holding that the assessee-firm was not entitled to investment allowance under section 32A ? 2. Whether the Tribunal was justified in law in holding that the assessee was entitled to ....

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.... appeal before the Commissioner of Income-tax (Appeals) who allowed the same and directed the Income-tax Officer to allow the claim for investment allowance after verification He also enhanced the depreciation on the generator from 10 per cent. to 30 per cent. Feeling aggrieved by the order passed by the Commissioner of Income-tax (Appeals), the Revenue preferred an appeal before the Tribunal. The....

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....nery or plant in the previous year in which it was installed. Putting it into use is not a pre-condition for grant of investment allowance. The Calcutta High Court in the case of CIT v. Surama Tubes P. Ltd. [1993] 201 ITR 124 has held that neither section 32(1) (iia) nor section 32A requires that the machinery or plant has to be put into use in the year in which it is acquired for the purpose of c....

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....t to the year under consideration. 8 So far as the depreciation on generator is concerned, generator is not specifically specified in Appendix I relating to table of rates on which the depreciation is admissible and, therefore, the general rate of 10 per cent. is admissible. This court in a series of decision, viz., Income-tax Reference No. 179 of 1987, CIT v. Allcozine Alloy Casting, Aligarh, ....