TMI Blog2005 (10) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... the investment in these two assets was credited in the books of account on 10th March, 2000 which meant that the assessee became owner of the said two assets to the extent of Rs. 15 lakhs only on 10th March, 2000. 2. On the facts and in circumstances of the case, the learned CIT(A) has erred in law and on facts in directing the AO to allow deduction under s. 80-IB, as the assessee had not been able to prove that the machinery of Rs. 15.86 lakhs installed in his business premises was a new machinery and the same was not put to use before the installation in his premises. 3. That the order of the learned CIT(A) be set aside and that of the AO be restored. 4. That the appellant craves leave to add or amend any ground of appeal at the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business of industrial undertaking. As per the AO since the assessee has not produced evidence regarding purchase of new machinery as well as income generated from such business of industrial undertaking, the assessee is not entitled to deduction under s. 80-IB. The assessment order was carried in appeal before the learned CIT(A) where it was partly allowed. Now, the Revenue is aggrieved and is in appeal before the Tribunal. 3. During arguments, we have heard Mrs. Sukhwinder Khanna, learned Departmental Representative for the Revenue, and Sh. D.K. Gupta and Sh. Tej Mohan Singh, learned advocates for the assessee. 4. The gist of arguments on behalf of the Revenue in nutshell is that assessee made surrender of Rs. 12 lakhs for machiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be ascertained. At p. 4 of the paper book of the assessee, income and expenditure account for the period ending 31st March, 2000 has been placed by the assessee in which Rs. 20,830 has been shown from job work, Rs. 24,000 by rent of machinery and Rs. 15 lakhs as miscellaneous business income. On perusal of p.7, which is a rent agreement executed on 12th day of November, 1999 between M/s Madan Udyog, Manohar Colony, Jagadhri, and the assessee She Rajiv Kumar Madan, proprietor of M/s Rajiv Udyog, it is seen that the stamp paper itself was purchased on 12th Nov., 1999 whereas the rent period of 11 months has been shown from 1st Oct., 1999 to 10th Sept., 2000 at a monthly rent of Rs. 8.400. In our considered opinion, it seems this rent agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture or production of article in the said undertaking. (d) Above all a separate and distinct identity of the industrial unit set up. In the present case, the assessee has made a surrender of Rs. 3 lakhs in building account and Rs. 12 lakhs under the head 'plant and machinery' on 9th March, 2000 and assets were credited in the books of account on 10th March, 2000. From the record, it is seen that no income has been shown from April to September, 1999. The assessee itself has shown earning of Rs. 24,000 only from job work. In that situation, how the assessee can earn such a substantial amount. At the same time, the assessee has not produced any voucher for paying labour charges, etc. on account of fabrication of machinery. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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