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2015 (2) TMI 18 - HC - Income TaxInvestment allowance granted in A.Y. 1983-84 and adjusted in A.Y. 1990-91 withdrawn in the year under consideration merely on cessation of some liabilities which is said to be taxable u/S 41(1) - Held that:- On plain reading of section 155(4A) of the Income Tax Act, we find substance in the contention of learned senior advocate for the appellant-assessee that the conditions which have been enumerated in clause 4A of Section 155 of the Income Tax Act are not fulfilled by the revenue. Therefore, we hold that the tribunal was not right in law in holding that investment allowance granted in A.Y. 1983-84 and adjusted in A.Y. 1990-91 can be withdrawn in the year under consideration - Decided in favour of assessee. Depreciation granted earlier withdrawn and taxed as income u/s 41(1) - Held that:- Insofar as this question is concerned, it appears from the record that the Tribunal has decided the appeal solely on the basis of the decision of the Bombay High Court in the case of Nectar Beverages (P) Ltd. v. Deputy Commissioner of Income Tax,[2004 (2) TMI 49 - BOMBAY High Court] . However, the said decision of the Bombay High Court has been reversed by the Apex Court in the case of Nectar Beverages (P) Ltd. v. Deputy Commissioner of Income Tax, reported in [2009 (7) TMI 5 - SUPREME COURT ], therefore the question raised in this appeal is required to be answered in favour of the assessee and hold that the Tribunal was not right in law in holding that depreciation granted earlier can be withdrawn and taxed as income u/s 41(1) of the Act - Decided in favour of assessee. Enhancement of income - Held that:- Insofar as this question is concerned, in view of the decision of the Apex Court in the case of Micorp Global P. Ltd. v. Commissioner of Income Tax (2009 (2) TMI 5 - SUPREME COURT), the same is also required to be answered in favour of the assessee.
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