TMI Blog2003 (9) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... setting aside the order passed by the Income-tax Officer under section 155(4A) whereby the investment allowance allowed at the time of the original assessment stood withdrawn - there is no question of application of section 155(4A)(a) - - - - - Dated:- 4-9-2003 - Judge(s) : D. H. WAGHELA., D. A. MEHTA. JUDGMENT The judgment of the court was delivered by D.A. MEHTA J.-This is a reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not functioning efficiently resulting in frequent stoppages of production. In the light of this accepted position, the Assessing Officer issued notice indicating intention to rectify under section 155(4A) of the Act. The assessee resistea the proposed action. However, according to the Assessing Officer, in the light of the definition of "transfer" within the meaning of section 2(47) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded by Mr. Bhatt that section 155(4A) specifically lays down that if at any time before the expiry of eight years from the end of the previous year in which the plant and machinery was installed, the plant and machinery was sold or otherwise transferred, the investment allowance originally granted shall be deemed to have been wrongly allowed and the Assessing Officer was, therefore, right in pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industries Ltd v. CIT [1997] 224 ITR 589. It is an admitted position that in this case what has happened is that the asset in question was scrapped and the scrap was utilised as raw material for the manufacture of steel and the steel was subsequently sold. In light of this peculiar factual position the Tribunal was right in law in holding that neither machinery nor plant on which investment all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apparent that the plant and machinery on which investment allowance was granted was not in existence and what was sold was steel recovered from the scrap of plant and machinery. Hence, in the absence of the plant and machinery, there is no question of application of section 155(4A)(a) of the Act. In the result, we hold that the Tribunal was right in law in holding that the Assessing Officer cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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