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2017 (4) TMI 182 - RAJASTHAN HIGH COURTEntitlement for the benefit under section 80-I - Held that:- Tribunal was justified in holding that the assessee is entitled for the benefit of deduction under section 80-I of the Act on the machinery which was an old asset and was put to use by the assessee in its old unit has also claimed depreciation on same in the earlier assessment year. Benefit envisaged under section 80-I(2) - Held that:- Tribunal has erred in law and acted perversely in holding that the forklift truck was on trial run in the old unit and which was ready for use in the new unit should be treated as a new asset without properly interpreting the provisions of section 80-I(2) and Explanation 2 thereof according to which the total value of old plant and machinery exceeded 20 per cent. and the assessee was not entitled to the benefit envisaged under section 80-I(2) Rejection of accounts as well as invoking of provisions of section 145 - Held that:- Lump sum amount taken by the Commissioner of Income-tax (Appeals), the contention of Mr. Jain is required to be accepted. The Assessing Officer by adopting 35 per cent., in our view which is at higher side, even if we accept the profit which has been shown by the assessee from the year 1991-92 to 1996-97, the average of which comes to 31. 4, for that we put the estimate at 32 per cent. instead of 35 per cent. by the Assessing Officer. In that view of the matter, the issue No. 3 is answered in favour of the Department and against the assessee and we estimate profit at 32 per cent. and calculation may be done on that basis by the Assessing Officer.
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