2004 (9) TMI 58

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....e-tax (Appeals) decision in holding that mere passing a journal entry mentioning utilisation of investment allowance reserve fulfils the requirement of the provisions of section 32A(5) of the Income-tax Act, 1961?" We have heard Sri A. N. Mahajan, learned counsel for the Revenue, and Sri S. P. Gupta, learned senior counsel assisted by Sri S. D. Singh, on behalf of the respondent-assessee. This appeal and other connected appeals relate to the assessment years 1978-79 to 1986-87. During these assessment years, the respondent-assessee claimed and was granted the following amounts towards investment allowance: ------------------------------------------------------------------------------------ Accounting  Assessment  Deduc....

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....;    1,56,829             2,99,605 1979-80      1981-82         25,486               25,486             3,25,091 1980-81      1982-83       3,10,448             3,10,448             6,35,539 1981-82      1983-84       3,57,874  &nb....

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....r in respect of each of the assessment years in question. Feeling aggrieved the respondent-assessee preferred separate appeals before the Commissioner of Income-tax (Appeals), The Commissioner of Income-tax (Appeals) found that during the assessment year 1988-89 the respondent-assessee had purchased plant and machinery, Which was much more in value than the amount standing in the investment allowance reserve, i.e., the machinery was purchased for Rs. 57,93,122 whereas the amount standing in the investment allowance reserve was only Rs. 29,03,527. He accordingly allowed the appeal arid deleted the withdrawal of the investment allowance. The Revenue's appeals before the Tribunal have failed. From the perusal of the order of the Tribunal....