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2014 (3) TMI 211 - HC - Income TaxClaim of investment allowance u/s 32A of the Act - Whether the assessee is entitled to claim investment allowance u/s 32A of the Act on the value of bottle washer machine leased out by the assessee as part of its business Held that:- The decision in Commissioner of Income Tax Vs. Shaan Finance (P) Ltd. [1998 (3) TMI 8 - SUPREME Court] where the business of the assessee consisted of hiring out machinery and/or where the income derived by the assessee from the hiring of such machinery, was business income, the assessee must be considered as having used the machinery for the purpose of its business thus, a leasing or finance company, which leased out machinery owned by it, to third parties, who used the machinery for manufacture of articles or things as specified in Section 32A(2)(b)(III) would be entitled to investment allowance in respect of such machinery under Section 32A of the Income Tax Act. Validity of Recall of order Held that:- The issue of whether the Tribunal could have rectified its mistake is settled in Assistant Commissioner of Income-Tax Vs. Saurashtra Kutch Stock Exchange Ltd. [2008 (9) TMI 11 - SUPREME COURT] - The Admissibility of the claim of the assessee to investment allowance under Section 32A of the Income Tax Act, in a case like this, has been decided in favour of the assessee and against the revenue - An order which is contrary to a judgment of the Supreme Court is patently erroneous - When the Supreme Court renders a decision enunciating a principle of law, it is assumed that, what was enunciated by the Supreme Court, was in fact, the law from the inception thus, the Tribunal was justified in recalling the earlier order Decided against Revenue.
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