TMI Blog2011 (2) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... - - - Dated:- 25-2-2011 - MR.JUSTICE ADARSH KUMAR GOEL, MR.JUSTICE AJAY KUMAR MITTAL, JJ. Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant. Mr. S.K.Mukhi, Advocate for the respondent A DARSH KUMAR GOEL, J ( Oral) . 1. Since Registry has not been able to send the file on account of fire in the Court premises, learned counsel for the revenue has furnished copy of paper-book which is taken on record. We proceed to decide the matter after hearing learned counsel for the parties. 2. This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 ( the Act ) against order dated 3.10.2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh in ITA No.20/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery installed. We find that the statements made by the Chief Engineer of the assessee were on the basis of such records. On the strength of such evidence, the assessee had argued that it being an entity, which is headed by government official as its Managing Director, there were no reasons to doubt the bonafides of the claim. In this connection we find that the CIT(Appeals) has found discrepancies in the log-books produced by the assessee. According to the CIT(Appeals) the log-book related to new boiler and turbine etc. had nothing relating to production from the expanded plant is produced/filed. According to the CIT (Appeals), the running of boilers and turbines cannot be taken as an evidence relating to readiness of the plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be allowed. This plea cannot be accepted. The Tribunal has categorically held that the plant and machinery was kept in the state of readiness for production. Moreover, in the case of the assessee itself we have approved the view of the Tribunal in order dated 17.12.2010 in ITA No.515 of 2008 (The Commissioner of Income-Tax Vs. The Shahbad Co-op. Sugar Mills Ltd.) as follows:- 10. We also find that expression used in Section 32 of the Act has been judicially interpreted to include machinery kept for use, even if the same was not actively used. Passive user has also been held to be user where it may be necessary for business of the assessee to keep the machinery ready for use. Reference may be made to the judgment of Delhi High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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