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2015 (1) TMI 833 - GUJARAT HIGH COURTDeduction u/s 32AB(6) disallowed - amounts deposited in the Investment Deposit Account with IDBI pursuant to Investment Deposit Account Scheme - non utilised during the previous year for the purchase of any new ship, new aircraft, new machinery or plant - Held that:- In the present cases, we find that that all the conditions mentioned in the scheme are fulfilled. The scheme nowhere provides that term loan should be only for plant and machinery. The only condition provided by the scheme is that the term loan should be contracted for more than three years and it should be from a scheduled bank or a financial corporation. It is a special benefit given to industries to boost their production and to update their machineries and keep the industry abreast with new technology and to see that the industry does not carry on its business with old machinery and that the industry equips itself with the latest plant and machinery. Therefore, in order to take benefit of the beneficiary legislation, the assessee firm has every right to plan its tax payment accordingly. Essentially, it entitles an assessee carrying on a business or profession to reduce his taxable income by the sum utilised by him for purchase of new plant and machinery and or deposited with the Industrial Development Bank of India for such utilisation. A perusal of clause 9 of the Scheme mentions that the withdrawal could either be utilised for purchase of new ship, aircraft, plant & machinery or computers to be installed either in office or at the business premises. In the alternative, the amount can also be used for repayment of principal amount of term loans which should have been contracted after 31.03.1986 taken from a specified financial institution including specified banks. It is required to be noted that the clause does not state that the term loan should be used for any specific purpose like purchase of new machinery etc. - Decided in favour of assessee. Separate relief under sections 80HH and 80I of the Act - Held that:- The question is squarely governed by the decision of this Court in the case of Commissioner of Income tax vs. Amod Stamping reported in [2004 (1) TMI 15 - GUJARAT High Court] which has been considered by the Apex Court in the case of Joint Commissioner of Income-Tax vs. Mandideep Eng. And Pkg. Ind. P. Ltd reported in [2006 (4) TMI 75 - SUPREME Court] stating both the sections are independent and, therefore, the deductions could be claimed both under sections 80HH and 80-I on the gross total income. - Decided in favour of assessee.
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