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TMI Blog2014 (4) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... to each other and craves leave to add, to alter, to amend or to furnish fresh and /or detailed grounds of appeal on or before the hearing. " During the course of hearing before us, Authorised Representative(AR)of the assessee filed an application for admitting additional evidences. In the application it was mentioned that the documents were not part of assessment records of the year under consideration, but were submitted during the assessment proceeding of the preceding year, that the same related to that year, that the Assessing Officer(AO)had accepted the figures and contents of the documents for allowing depreciation for the year under consideration, that the documents would have bearing on the ground under appeal. Document submitted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see had acquired/installed the machinery after 31. 03. 2005, that the assessee had acquired the new plant and machinery worth Rs. 12, 72, 32, 563/-on or before 31. 03. 2005, that the Balance Sheet of the assessee revealed that it had shown assets acquired as on 31. 3. 2005 in the Gross Block under the head Fixed Assets, that the assessee had acquired the Plant and Machinery in the financial year 2004-05, that same were not put to use for the purpose of business in that financial year, that the assessee was not eligible for the AD for the said amount. 2. 1. Against the order of the AO assessee preferred an appeal before the First Appeal Authority (FAA). After considering the submissions of the assessee and the assessment order, he held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing or production of any article or thing prior to the acquisition of this plant and machinery as required by the provisions of section. He further held that the term new used in the section meant recently come into being/recently discovered, that new acquisition meant an estate not originating from distant past, that P&M acqu - ired before 31. 03. 2005 was not new assets as required by the provisions of Sec. 32(1)(iia)of the Act, that the important ingredient of the section was that the machinery should have been install - ed, that the word 'installed' had not been defined in the Act. Referring to the matter of Mir Mohd. Mir, delivered by the Hon'ble Apex Court held that the expression 'installed' did not necessary mean fixed in pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, Authorised Representative(AR) submitted that P&M their parts, amounting to Rs. 9, 55, 68, 648 were acquired during the previous year ended 31/3/ 2006, that the capital work in progress was in accordance with accounting principles, that the machinery had not completed and taken its final form, that the completion of installation and erection of P&M as well as the comm - ercial production commenced on 1/1/2006, that the capital work in progress was transferred to P&M account in the year under appeal, that the P&M under the head fixed asset were acquired / installed and erected during the previous year ended on 31/3/2006. He referred to pages 1-13, 71- 86 of the paper book. Departmental Representative (DR) submitted that P & M worth Rs. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. As in the case of investment allowance, so also in the case of AD, the material date is the date of installation and not the year of acquisition. Our views are based on the judgment of the Hon'ble Calcutta High Court, delivered in the case of Surama Tubes(P. )Ltd. (201ITR124). In the case under consideration, AD has been disallowed by the FAA on the ground that P&M were acquired before 31. 03. 2008. In our opinion machinery was installed in the AY. under appeal, though acquisition of the P&M had started in the earlier AY. Till a machine is not assembled in a manner that it could be used to manufacture, it cannot be held that it had been installed. Mere purchasing or shifting it to factory premises is not enough. Assessee had claimed AD ..... X X X X Extracts X X X X X X X X Extracts X X X X
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