TMI Blog2006 (9) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule of the Income-tax Act, 1961? 2. Whether, on the facts when the effluent treatment plant is exclusively used for the 'process of effluent and no part of the plant and machinery was used for manufacture of liquor, the bar under the Eleventh Schedule to allow investment allowance would operate against grant of investment allowance for the said plant and machinery?" The facts in brief are as under: The appellant-company claimed investment allowance on the effluent treatment plant installed in its IMFL unit amounting to Rs. 26,35,439. The same was disallowed by the assessing authority. An appeal was filed before the Appellate Commissioner. The Appellate Commissioner dismissed the appeal. A second appeal was filed. The second appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment authority. The Appellate Commissioner would hold that the effluent treatment plant is an integral part of the machinery used for manufacture of alcoholic liquor and that therefore the appellant is not entitled to have any benefits on the facts of this case. The Tribunal has endorsed the views of the Appellate Commissioner. In the light of the arguments placed before us, we have carefully perused the orders passed by the authorities. Section 32A would provide for investment allowance. Section 32A(1) would provide for deduction of a sum by way of investment allowance equal to 25 per cent. of the actual cost of the ship, aircraft or machinery or plant to the assessee. Section 32A(2)(b)(iii), if read carefully would show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of environment and which has been notified in, this behalf by the Central Government in the Official Gazette, is installed after the 31st day of May, 1983, but before the 1st day of April, 1987, in any industrial undertaking referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii) of clause (b) of sub-section (2), the provisions of sub-section (1) shall have effect in relation to such machinery or plant as if for the words 'twenty-five per cent.' the words 'thirty-five per cent.' had been substituted." There is subsequent development in terms of a benefit under section 32A(2C) of the Act. A reading of the said provision would show that the Legislature in its wisdom has chosen to provide a concessional benefit of investmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the light of a laudable object of protecting the environment by way of concessional allowance of 25 per cent. in terms of the legislative wisdom. Therefore, we have no hesitation in accepting the argument of Sri Arvind Datar, learned senior counsel in the case on hand. We must notice one more aspect of the matter for the purpose of consideration of the case of the appellant in the given circumstances. In fact, Dr. Krishna, learned counsel would argue that in the event of granting any concession, it may relate back to 1976. This submission is unacceptable to us because the benefit in terms of section 32A(2C) is available only in the event of installation of pollution plant after May 31, 1983. Dr. Krishna, learned counsel also says that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , while answering entitlement in favour of the assessee, we deem it proper to remand the matter to the Tribunal only for the purpose of consideration as to whether the plant would fall in terms of the notification. Parties are to appear before the Tribunal without waiting for any notice, whatsoever, on October 25,2006. The Tribunal is to consider the material facts with regard to the pollution control equipment falling within the notification dated August 1, 1984. If the assessee is able to convince the Tribunal with regard to its plant falling in the notification, then the Tribunal has to provide the benefits to the appellant in terms of this order. In the result, this appeal is partly allowed. The questions of law are answered in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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