TMI Blog2015 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled only to deduction on the amount which was referred in the contract dated 02.05.1986 which on pro-rata basis comes to ₹ 47,25,633/- and 20% of the same comes to ₹ 9,45,126/-. We therefore answer the question raised in the present appeal in the affirmative to that extent. The assessee shall be entitled to deduction on investment allowance to the extent of ₹ 9,45,126/- - Decided partly in favour of assessee. - TAX APPEAL NO. 460 of 2000 - - - Dated:- 19-11-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR SN SOPARKAR, SENIOR ADVOCATE WITH MR BS SOPARKAR, ADVOCATE FOR THE OPPONENTS : MR KM PARIKH, ADVOCATE JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. Being aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of investment allowance as claimed by the appellant. The ITAT reversing the order passed by CIT(A) confirmed the order passed by Assessing Officer. Being aggrieved by the said order, the present appeal is filed. 3. Mr. Saurabh Soparkar, learned Senior Counsel apeparing with Mr. B.S. Soparkar, leanred advocate appearing the assessee has drawn the attention of this Court to the provisions of sub clause 8(b) of Section 32A of the Income Tax Act and contended that the contract for purchase of machinery was not before 12.06.1986 as required by Section 32A(8B) of the Act. He submitted that the documents which were placed on record by the assessee are very crucial and are required to be considered in its true spirit. He has drawn our attent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c Hoist Morris Brand 1 03/05/86 05/06/87 85,409 4 Tools Moulds: (i) Macro Moulds dies (ii) Tools 2 1 set 31.5.86 15.4.86 9.6.87 9.6.87 1,56,733 27,785 5 Electrical Installation 1 lot 23.5.86 01/06/87 4,36,939 The A.O allowed claimed with regard to tools and moulds. However with regard to the first 4 items of plant and machinery as baove the A.O disallowed the claim on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced hereunder: (8) The Central Government, if it considers necessary or expedient so to do, may, by notification in the Official Gazette, direct that the deduction allowable under this section shall not be allowed in respect of any ship or aircraft acquired or any machinery or plant installed after such date as may be specified therein. (8A) The Central Government, if it considers necessary or expedient so to do, may, by notification in the Official Gazette, omit any article or thing from the list of articles or things specified in the Eleventh Schedule.] (8B) Notwithstanding anything contained in subsection (8) or the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. GSR 870 (E), d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1988 , but before such date as the Central Government, if it considers necessary or expedient so to do, may, by notification' in the Official Gazette, specify in this behalf. 6. Having gone through the records, more particularly the letter dated 05.02.1992, it is borne out that a revised contract was entered into on 18.08.1986 which was in continuation of the earlier contract dated 02.05.1986 for the two Injection Moulding Machines. The relevant portion of the said letter is reproduced hereunder: 3) However, due to procedural delay in execution, improvement of our product and cost escalation, we entered into the revised contract No. NI/008-R on 18th August, 1986 which was in continuation of our earlier contract dated 2nd May 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 , to evidence that the appellant had entered into contract for the Plant Machinery in May, 1986. 11.12 It is difficult to assume that all the exercise in the form of obtaining the other machineries which were essentially for commencing the commercial production were done without entering into the contract for purchase before 12.06.1986. It would amount to impute insinuative motive to the appellant company that it had placed orders for the machineries and had given the projection to the financial institution from which it had availed funds wherein it was stated that the appellant was entitled to deduction under Sec. 32A of the I.T. Act. This representation could be considered to be an overwhelming evidence of the motive of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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