2005 (8) TMI 40

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....nvestment allowance on the electric installation, transformers and A.C. plant?" The assessment year is 1982-83 and the relevant accounting period is the year ended on September 30, 1981. During the year following machinery were installed costing Rs. 86,37,475. (Rs.) 1. Crimping machine No. 1        39,00,250 2. Crimping machine No. 2        39,02,945 3. Air-condition plant                4,45,452 4. Electric installations                1,92,753 5. Transformer         &....

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....     ----------- The assessee claimed investment allowance on the said sum of Rs. 86,37,475. The Assessing Officer disallowed investment allowance on three items, viz., air-conditioning plant, electric installations and transformer. The reasons advanced by the Assessing Officer are that "these machineries constitute separate self-contained units and are to be seen as such. The mere fact that it helps to run the other art silk machinery cannot make it part of the integrated machinery for manufacture of art silk". The assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals), who upheld the claim of the assessee vide order dated March 23, 1988. The Tribunal dismissed the departmental appea....

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....me-tax (Appeals) granting investment allowance was required to be reversed. As against that Mr. Manish J. Shah, learned advocate for the respondent-assessee, submitted that the Commissioner of Income-tax (Appeals) has accepted the submission made on behalf of the assessee that all machinery and plant are put together and put into operation by making them a single composite unit without which no production was possible. That any one of the items de hors the other plant and machinery cannot be operated for the business of the assessee and all items of machinery are integrated into a plant constituting a single unit for manufacturing. As can be seen from the findings recorded by the Assessing Officer there is no dispute as to the fact th....