TaxTMI 
TaxTMI 
1997 (12) TMI 132
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, we find that the present issue is now overed by the decision of the Supreme Court in favour of the assessee in the case of CIT v. P.J. Chemicals Ltd. [1994] 210 ITR 830/76 Taxman 611 Accordingly, this ground of appeal is rejected. 3. The next ground is in relation to the deduction under section 32AB of Rs. 2,34,349 which was allowed by the CIT (Appeals). 3.1 The Assessing Officer found that the company has claimed investment deposit benefit under section 32AB of Rs. 2,34,350 on purchase of plant and machinery made during the year. The assessee in support of its claim has filed the Auditor's report in form No. 3AA. The details of purchase was filed by the assessee before the Assessing Officer which is as follows:- ------------------------------------------------------------------------------------------------- S. No. Description Amount Date of Date of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bsp; 42554 31-3-1990 - Total 139446 (disallowables) ------------------------------------------------------------------------------------------------- From the said details, the Assessing Officer found that the payments for the purchase of machineries were made after the expiry of previous year. Although purchases were made during the year under consideration since the payments were made beyond the previous year. Hence the relief claimed by the assessee under section 32AB was negatived by the Assessing Officer. 3.2 The first appellate authority allowed the claim holding that as the plant and machinery were purchased during the accounting yea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase of machinery. 3.5 We have heard both the sides and perused the materials on record. It appears that the facts of the present issue is not in dispute that the assessee-company purchased machineries on 4-10-1989, 30-3-1990 & 31-3-1990 i.e., within the previous year under consideration, for which payments were made on 16-7-1990, 9-6-1990 & 21-8-1990 i.e., beyond the previous year. The relevant provision of section 32AB reads as follows:- "32AB (1) subject to the other provisions of this section, where an assessee, whose total income includes income chargeable to tax under the head 'Profits and gains of business or Profession', has, out of such income- (a) deposited any amount in an account (hereafter in this section referred to as deposit account) maintained by him with the Development Bank before the expiry of six months from the end of the previous year or before furnishing the return of his income, whichever is earlier, or (b) utilised any amount during the previous. year for the purchase of any new ship, new aircraft, new machinery or plant, without depositing any amount in the deposit account under clause (a) in accordance with, and for the purposes specified i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ch income, without depositing the same under clause (a) of subsection (1) of section 32AB of the Income-tax Act, in accordance with this Scheme, for any of the following purposes, namely- (i) purchase of new ship or new aircraft or new machinery or new plant for the purposes of the business or profession carried on by the depositor; (ii) purchase of new computers to be installed either in the office or at a place where the depositor carries on business or profession; (iii) repayment of the principal amount of term loans contracted after the 31st March, 1986, and taken for a period of three years or more from a financial corporation which is engaged in providing long-term finance for industrial development in India or from a scheduled bank or from any such other institution as the Central Government may, by notification in the Official Gazette, specify in this behalf." From the reading of the aforesaid provision of the scheme, we find that any amount out of such income without depositing the same under clause (a) of sub-section (1) of section 32AB of the Act may be utilised for the purpose of purchase of new ship or new aircraft or new machinery for the purposes of busin....