TMI Blog2004 (1) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... that both the right to carry forward and claim investment allowance and the duty to create the corresponding reserves are deferred to the future years?" – All the questions are answered against the assessee and in favour of the Revenue. - - - - - Dated:- 28-1-2004 - Judge(s) : R. JAYASIMHA BABU., S. R. SINGHARAVELU. JUDGMENT The judgment of the court was delivered by S.R. Singharavelu J.- The questions referred to in this case are: "(i) Whether, on the facts the Tribunal is right in law in holding that investment allowance could be allowed only if the claim is made in the year of installation of machinery? (ii) Whether the Tribunal is right in its interpretation of the provisions of section 32A of the Income-tax Act, 1961, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct entitles the assessee to an investment allowance at 25 per cent, of the value of the machinery installed. The only other conditions to be fulfilled under section 32A(4) of the said Act are: "(i) the particulars prescribed under rule 5AA are furnished; and (ii) an amount equal to 75 per cent. of the investment allowance actually allowed is debited to the profit and loss account to be utilised for the purposes of business of undertaking." The particulars to be furnished under rule 5AA are the same both for allowance of depreciation under section 32 and investment allowance under section 32A of the said Act. It was submitted that the assessee was only incurring loss during the years 1982-83 to 1988-89. The requisite reserve could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 91] 190 ITR 179 (Patna), wherein it was observed that once the assessee fulfilled the statutory conditions for becoming entitled to deduction on account of development rebate, the carry forward of unabsorbed development rebate is not dependant on any quantification by the Income-tax Officer by way of making an assessment for that assessment year. At this juncture, factually a mention is to be made regarding the original declaration made by the assessee on profits of Rs. 47,12,500 and Rs. 90,08,915 during the years 1987-88 and 1988-89. Subsequently, revised returns were filed on December 12,1991, for those two years thereby revising income to a loss of Rs. 1,56,61,850 for the year 1987-88 and a profit of Rs. 62,37,657 for the year 1988-89. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee assessable for that assessment year, computed in the manner aforesaid, to nil, and the balance of the investment allowance, if any, still outstanding shall be carried forward to the following assessment year and so on, so, however, that no portion of the investment allowance shall be carried forward for more than eight assessment years immediately succeeding the assessment year relevant to the previous year in which the ship or aircraft was acquired or the machinery or plant was installed or, as the case may be, the immediately succeeding previous year." If the Assessing Officer has not passed the order quantifying the investment allowance and also carrying forward for subsequent years, then the provisions of sections 32A( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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