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2004 (11) TMI 73 - ALLAHABAD HIGH COURTMachinery employed - investment allowance within the meaning of section 32A(2)(b) – Disallowance of payment of interest to depositors in excess of 15 per cent, per year under the Companies Deposit Rules – Held that assessee is not entitled to investment allowance under section 32A – Held that the provision of rule 3(c) of the Companies (Acceptance of Deposits) Amendment Rules, 1981, was enforced on April 1, 1981. The amendment is in the Companies Deposit Rules and not under the Income-tax Act. It will come into operation only on April 1, 1981, and as the accounting period of the applicant ended on September 30, 1980, the same would not be applicable. In this view of the matter the Tribunal was justified in allowing the amount of interest claimed by the applicant. – Appeal partly allowed
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