TMI Blog1996 (1) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant is a firm which derived income from purchase and sale of forest products and also from rice milling. The Commissioner of Income-tax, on verification of the income-tax record, came to the conclusion that the assessment was erroneous and prejudicial to the interest of the Revenue for the following reasons : (i) Allowance under section 32A was wrongly allowed as the machinery of the value of Rs. 53,979 was second-hand machinery on which investment allowance was not allowable. (ii) Claim under section 80HH was wrongly allowed as : (a) the conditions stipulated in that section were not fulfilled, as the business was already in existence in 1979-80 and the business was formed by transfer of machinery or plant previously used. As pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side the order of assessment, vide annexure " B ". Aggrieved against the aforesaid order of the Commissioner of Income-tax, dated June 25, 1983 (annexure "B"), the assessee approached the Tribunal and the Tribunal examined the matter in detail and found that so far as the first question regarding investment allowance under section 32A was concerned, even the assessee himself did not press the relief and withdrew that relief. Therefore, in any case, so far as the orders of the Commissioner of Income-tax and the Income-tax Officer are concerned to that extent they have become final. Now, the only question remains regarding the enquiry into the investment allowance under sections 80HH and 80J. For that, the Commissioner of Income-tax only ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and that was not the correct approach. The Income-tax Officer should have examined the matter in the light of the conditions mentioned in both the sections before granting relief. We are of the opinion that the Commissioner of Income-tax has not given any finding, but only remanded the case back to the Income-tax Officer for reassessment after complying with the conditions laid down for grant of benefit under sections 80HH and 80J. Therefore, the finding recorded by the Tribunal appears to be not correct because all the materials which ought to have been utilised by the Income-tax Officer were not there and it is not understandable that how the Tribunal have on their own, as sessed the situation. Therefore, we are of the opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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