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2011 (2) TMI 1247 - HC - Income TaxWhether ITAT was justified in holding that the amount paid as advance for purchase of machinery during the year under consideration was the amount utilized for the purchase of machinery within the meaning of Section 32AB of the Income Tax Act – Held that:- Finance Act, 1986, introduced section 32AB relating to investment deposit account. The provisions apply in relation to the assessment year 1987-88 and subsequent years. Under these provisions, an assessee is entitled to a deduction of an amount up to 20 per cent of the profits of 'eligible business or profession', if the said amount is either deposited with the Development Bank within the period up to six months from the end of the previous year or before furnishing the return, whichever is earlier, or is utilised during the previous year for the purchase of a new ship, new aircraft, or new machinery or plant, ITAT was justified in holding that the amount paid as advance for purchase of machinery during the year under consideration was the amount utilized for the purchase of machinery within the meaning of Section 32AB of the Income Tax Act
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