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2006 (8) TMI 144 - HC - Income TaxInvestment allowance under section 32A - assessee claimed investment allowance of Rs. 7,87,652 in the assessment year 1986-87 and Rs. 14,37,943 in the assessment year 19&7-88 on the total costs of the plant and machinery installed or put to use in the respective years. - It was never in dispute that the plant and machinery owned by the assessee are wholly used in mining and excavation and the said activity is the active business of the assessee. The precondition of section 32A that the plant and machinery specified in sub-section (2), which is owned by the assessee and is wholly used for the purposes of business, is fully satisfied. As the plant and machinery are used for the business, section 32A(1) would apply with full force and as the plant and machinery are coming within the purview of section 32A(2)(b)(iii), the assessee would be entitled to the investment allowance
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