TMI Blog1993 (2) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... 87 dt. 23-4-1987 83,200 2. Cost of plant : Purchased from M/s. Fabrica Chemiplants P. Ltd. : Bill No. 87019 dt. 22-4-1987 1,59,120 Bill No. 87007 dt. 22-4-1987 48,880 2,08,000 --------------- 3. Cost of Column Packing : Bill No. 4858 dt. 30-6-1987 26,374 4. Cost of pipefittings valves etc. 64,758 5. Cost of chilling plant--- Bill No. 20062 dt. 10-9-1987 22,500 --------------- 4,04,832 --------------- The dates of placement of the orders are stated to be 3-6-1986, 23-5-1985, 19-5-1986 and 1-6-1986 respectively for the first four items of machinery. However, no such date is given or indicated for the machinery appearing at Item No. 5. The assessee's accounting year for the impugned assessment year is from 23-10-1987 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries purchased by the assessee in the earlier previous year ending on 23-10-1987 (A. Y. 1988-89) but put to use on 1-1-1988 are entitled to deduction under section 32A of the Act. This section grants deduction of 25 per cent on the cost of plant and machinery in the year of acquisition or installation or in the years immediately succeeding previous years if the plant and machinery are first put to use in that year. The rate is 20 per cent if the assessee's case fell under sub-section (8B), of section 32A of the Act. Sub-section (2), of section 32A, of the Act specifies such plant and machinery and cl. (b) thereof, which is relevant for the purposes of this appeal, reads as under : " (b) any new machinery or plant installed after 31st day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this section shall not be allowed in respect of any ship or aircraft acquired or any machinery or plant installed after the 31st day of March, 1987. " All the machinery on which investment allowance is claimed, if one looks at the dates of purchase, the date of installation not indicated, fell within the period 1-4-1987 to 31-3-1988 and, therefore, unless the assessee's case is saved by clause (a) of sub-section (8B), of section 32A, it would not be entitled to the deduction. Sub-section (8B), of section 32A, of the Act, reads as under : " (8B) Notwithstanding anything contained in sub-section (8) or the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. GSR 870(E), dated the 12th June, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d evidence to the satisfaction of the Assessing Officer that it had either purchased, or placed order for such purchase of the plant and machinery, before 12th June, 1986. The assessee could well be entitled to 32A deduction if it furnishes such evidence even if the machinery was installed in the vulnerable period of 1-4-1987 to 31-3-1988, as stated in clause (b), of sub-section (2), of section 32A of the Act. The assessee had filed photostat copies of the placement of orders for the first four items of machinery which are all before 12-6-1986 and, therefore, in my opinion, would be entitled to deduction for these four items. However, no such evidence is forthcoming for the machinery appearing at serial No. 5, i.e., Chilling Plant, which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, fall in this period starting from 23-10-1987 to 31-3-1989 which is the previous year of the assessee for the assessment year 1989-90. The contention of the learned Departmental Representative has, therefore, no force. It is, therefore, rejected. The net result is that the order of the DCIT(A) granting investment allowance is upheld except to the extent of its disallowance on Chilling Plant costing Rs. 22,500. 7. The next ground is against the deletion of the addition of Rs. 19,000 made by the Assessing Officer on account of unexplained cash credit under section 68A of the Act. The DCIT(A) has deleted this addition by stating in para 7 of his order as under : " I have considered carefully the submissions of the ld. C. A and I accep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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