TMI Blog2014 (4) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... UTTA High Court] - 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. It is a common phenomenon that in big projects, installation of machinery takes very long time because of the sheer volume of the work to be carried out - If an assessee is not successful in installing P&M in one year and carries forward the installation work in subsequent year/years it cannot be denied any benefit on the ground that it had acquired the P &M in earlier year - The intent of the legislature was to attract investment – the production started from 01. 01. 2006 - Before that fabrication and completion of P&M was goi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 by the assessee consisted of a). Ledger Account of Capital Work in Progress for the year ended on 31-03 -2005, b). Ledger Account of Fabrication of Plant and Machinery for the year ended on 31-03-2005 (at year end transferred to Capital Work in Progress -Plant and Machinery) c). Ledger Account of Electric Installation for the year ended on 31-03-2005. After considering the contents of the application of the assessee, we are of the opinion that documents submitted by it should be taken on record, as same were available on the record of the AO and he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. 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 it had claimed AD of Rs. l, 27, 23, 266, that the requirement of section 32(1)(iia)were the acquisition of new machinery or plant and the installation of same after 31. 03. 2005 by an assessee engaged in the business of manufacture or production of any article of thing, that the requirements of the provision of the Act were distinct and separate from each other but were cumulative in nature, that the intention of the Legislature was simple, that AD was made available to those assessees who had acquired and installed new machinery after 31/3/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord 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 position but also used in the sense of intended or introduced, that word installed meant to place an operators in service or use, that P M was installed at the premises of the assessee prior to 31/3/2005, that it treated P M as WIP and same was ready to be exploited for the purposes of commercial production, that the assessee had not only purchased the machinery but also placed it at its business premises ready for service or use, that the machinery was installed prior to 31/3/2005, that the second important ingredient of the section 32(1)(iia) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 55 Crores was acquired prior to 01. 04. 2005, nothing was acquired or installed after that date, that assessee had not fulfilled both the conditions required by the provisions of the Act. 2. 3. We have heard the rival submissions and perused the material before us. Earlier the additional depreciation was allowed in the case of a new industrial undertaking during any previous year in which it would start manufacturing or producing any article or thing on or after the 01. 04. 2002 or to any industrial undertaking existing before that date i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 @10%, as the P M had worked for a period less than one year. It is a common phenomenon that in big projects, installation of machinery takes very long time because of the sheer volume of the work to be carried out. If an assessee is not successful in installing P M in one year and carries forward the installation work in subsequent year/years it cannot be denied any benefit on the ground that it had acquired the P M in earlier year. The intent of the legislature was to attract investment, so in our opinion the section can be termed as be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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