2003 (9) TMI 61

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....erence at the instance of the Commissioner of Income-tax and the following question of law has been referred to us by the Income-tax Appellate Tribunal, Ahmedabad Bench "B", under section 256(1) of the Income-tax Act, 1961 (for short "the Act"): "Whether, the Appellate Tribunal is right in law arid on facts in setting aside the order passed by the Income-tax Officer under section 155(4A) whereb....

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....f the Act, there was extinguishment of rights of the assessee and, hence, the condition of the plant and machinery being" otherwise transferred" is satisfied. Therefore, according to the Assessing Officer, the investment allowance of Rs. 56,716 granted during the assessment year 1977-78 was required to be withdrawn. The assessee failed in its appeal before the Commissioner of Income-tax (Appeals).....

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....t in passing the necessary order recomputing the total income by withdrawing such investment allowance. It was submitted that the term "otherwise transferred" would take within its sweep not only the original plant and machinery but also any other item which would be obtained on conversion of the original plant and machinery. Mr. Bhatt also, at the same time, invited our attention to the fact that....

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....tment allowance had been granted was sold or otherwise transferred. The contention on behalf of the Revenue that the term "otherwise transferred" would take within its sweep any other converted form of the asset cannot be accepted in the light of the clear and unambiguous language employed in section 155(4A)(a) of the Act. In case of Vania Silk Mills P. Ltd. v. CIT [1991] 191 ITR 647, the apex ....