TaxTMI 
TaxTMI 
2022 (8) TMI 902
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....IT ought to have accepted the Appellant's contention that as per the budget speech 2013-14 of the Minister of Finance, the objective for which the incentive u/s 32AC was introduced is to "quicken the implementation of the projects" and therefore all the plant and machinery which are installed during FY 2013-14 are eligible for deduction u/s 32AC even if some of those plant and machinery was acquired before 1st April, 2013. 4. The Learned CIT erred in invoking the provisions of section 263 of the Act, since the order passed by the Learned Assessing Officer was made after making due inquires and verification and after relying on the ratio of certain judicial pronouncements and as such there was no error in the order passed by the AO. 5. The Appellant craves leave to add to, amend or alter the ground herein. For these and other grounds that may be urged at the time of hearing, the appellant prays for appropriate relief." 2. The assessee is a limited company engaged in the business of manufacture and sale of automotive components. For the AY 2014-15, the assessee filed a return of income on 29.11.2014 declaring an income of Rs.1136,86,47,150. The case was selected for scrut....
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....come filled for FY 2013-14 (AY 2014-15) we have claimed deduction in respect of investment in new plant and machinery u/s 32AC amounting to Rs. 409,135,945, The said sum has been arrived at 15% of new assets installed during FY 2013-14 amounting to Rs. 2,727,572,968. ii) The cost of such new assets includes Rs. 1,725,385,157 being the assets procured prior 31.03.2013 but installed in FY 2013-14. We submit that the deduction u/s 32AC is available even in respect of the above said category of the assets which is duly supported by the objective behind introducing the said incentive. As per the budget 2013-14 speech of the Minister of Finance, the objective for which the incentive u/s 32AC was introduced is to "quicken the implementation of the projects". Further, the plant and machinery which are in capital work-inprogress become 'new assets installed' as and when such plant and machinery are installed and put to use which might happen in subsequent year/s. Hence, we submit that the deduction u/s 32AC is applicable on all the assets which are installed during the year even if they are procured in the previous year. iii) In this connection, we draw your attention to the d....
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....has claimed a deduction of Rs. 409,135,945 as deduction u/s 32AC which includes a sum of Rs. 258,807,773 being the deduction pertaining to new assets installed during FY 2013-14 but acquired before 01.04.2013. From the above, it is clear that the AO has not granted deduction u/s 32AC in respect of assets acquired in earlier year without application of mind. But the AO has thoroughly examined the issue on hand and has satisfied himself about the correctness of the claim. He examined the claim with reference to the ratio of various judicial pronouncements referred above and thereafter came to the conclusion that the deduction claimed is proper and then he allowed the deduction. Therefore, we respectfully submit that there is no error in the order passed by the AO by granting deduction u/s 32AC in respect of the assets acquired prior to 01.04.2013 but installed after 01.04.2013. Hence we object your proposal. 5. The assessee submitted that the deduction u/s. 32AC has been allowed by the AO after examining the details submitted by the assessee and after application of his mind. The assessee also submitted that the AO has accepted the contention of the assessee with regard to the w....
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....ever, great the hardship may appear to be. 4.7 Further, in the case of Commissioner of Customs (Import), Mumbai vs M/S Dilip Kumar and Company & Or in Civil Appeal No.3327 of 2007, dt July 30, 2018, (2018-TIOL-302-SC-Cus-CB) while discussing the issue of interpretation of exemption provisions, the Constitution Bench of the Hon'ble Supreme Court held that a provision giving benefit to the assessee needs to be interpreted strictly and in case there is an ambiguity in the provision, which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the assessee and it must be interpreted in favour of the revenue. While doing so the SC overruled the ratio laid down in the decision in the case of Sun Export Corporation, Bombay v. Collector of Customs, Bombay, (1997) 6 SCC 564 and upheld the ratio laid down in Mangalore Chemicals & Fertilizers Ltd. vs Dy Commissioner of Commercial Taxes, (1992) Supp 1 SCC 21, which had already been approved by a three Judge Bench in Novopan India Ltd. v. Collector of Central Excise and Customs, 1994 Supp (3) SCC 606. In this case the three Judge Bench had held as follows: "We are, however, of the opinion that, on principl....
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....reading. In this regard, he relied on the following decisions:- * Ananda Bazar Patrika Pvt. Ltd. v. ACIT, ITA No.1121/Kol/2007 dated 9.8.2009 (Kolkatta Trib.) * JCIT v. Lotus Energy (India) Ltd., 68 taxmann.com 364 (Mum. Trib.) * Kokuyo Camlin Ltd. v. ACIT, ITA No.5443/Mum/2018 dated 22.4.2021 (Mum. Trib.) * DCIT v. Cosmo Films Ltd., 24 taxmann.com 189 (Del) * National Aluminium Co. v. CIT, 139 taxmann.com 552 (Orissa) * Ishwar Singh Bindra & Ors. v. State of UP, (1969) AIR (SC) 1450 (FB) * Mazagaon Dock Ltd. v. CIT, (1958) AIR 861 * M.R. Shah v. IDMC Ltd. 78 taxmann.com 285 (Guj) 9. The ld. DR submitted that section 32AC is a new section and hence there is no judicial precedent directly. Provisions of section 32AC are clearly states that the deduction is available only for plant & machinery acquired and installed on or after 1.4.2013. The intention of the statutory provisions should be understood in the direct sense and it cannot be interpreted differently. This being the first year of claim of the assessee, the AO should have looked into the details on the basis of which the assessee had claimed the deduction and should have allowed the deduction in accor....