Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 1003 - AT - Income TaxEligibility of deduction under sections 80I and 80HH - contention of the assessee is that during the period AYs 1988-89 to 1990-91 the machineries were put to use and no “commercial production” was made except the ‘trial run” - Held that:- The onus was on the assessee to demonstrate the quantum of input used in all three years when the depreciation is claimed and also the quantity of production produced in the “trial run”. Since the “trial run” has been made in all the three years, it was incumbent upon the assessee to explain that how many days “trial run” was carried out and how much electricity was consumed, whether raw-material was used or not, whether any finished products were produced and what was the accounting treatment of these goods, etc. and nothing has been placed on record by the assessee. The Revenue has demonstrated that there is substantial increase in the production turnover of the old Unit and as per the Revenue, such increase in the production was not possible when the production made in the new Unit is utilized by the old Unit. It is not disputed that the machinery used by the two Units are different, but the product remained same except the length of the product. It is not coming out from the record that what was the nature of the product sold by the assessee during AYs 1988-89 to 1990-91. In the absence of such details and also coupled with the facts that the assessee has not explained under what circumstances “trial run” was necessary for all the three years. Therefore, we are of the considered view that the issue to be restored to the file of AO for verification, whether there was only “trial run” of the machinery as claimed by the assessee or the assessee carried out any “commercial production” from New Unit during AYs 1988-89 to 1990- 91. In case, the assessee is able to prove its claim of “trial run” in that event the AO would allow the claim of deduction as made by the assessee. - Decided in favour of statistical purposes.
|