Itr/306/1999 Of The Commissioner Of Income Tax v. P.s.i. Data Systems (P)Limited

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE THOTTATHIL B.RADHAKRISHNAN &THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN MONDAY, THE 19TH DAY OF SEPTEMBER 2016/28TH BHADRA, 1938 ITR.No. 306 of 1999 ------------------- RA 56/1993 OF INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH -------------- APPLICANT:---------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS.SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES) SRI.GEORGE K. GEORGE, SC RESPONDENT(S): -------------- P.S.I.DATA SYSTEMS (P) LTD., KALOOR, KOCHI-17. BY ADV. SMT.PREETHA S.NAIR THIS INCOME TAX REFERENCE HAVING BEEN FINALLY HEARD ON 19-09-2016, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: PJ THOTTATHIL B.RADHAKRISHNAN &ANU SIVARAMAN, JJ. = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = I.T.R.No.306 of 1999 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 19[th] day of September, 2016 O R D E R Thottathil B.Radhakrishnan, J. 1.The issue raised in this reference is as to whether the assesseeis entitled to depreciation under Section 32 and investmentallowance under Section 32A of the Income Tax Act, 1961,hereinafter referred to as the 'Act'. is entitled to depreciation under Section 32 and investmentallowance under Section 32A of the Income Tax Act, 1961,hereinafter referred to as the 'Act'. 2.We have heard the learned Senior Counsel for the Income TaxDepartment and the learned counsel for the respondent-assessee. Department and the learned counsel for the respondent-assessee. 3.There is no dispute between the parties that the assessee isentitled to the benefit of Section 32 and therefore, eligible fordepreciation in terms of that provision of the Act. Onto thequestion as to whether the assessee was entitled to investmentallowance in terms of Section 32A of the Act, the primary issueentitled to the benefit of Section 32 and therefore, eligible fordepreciation in terms of that provision of the Act. Onto thequestion as to whether the assessee was entitled to investmentallowance in terms of Section 32A of the Act, the primary issue that has to be focused and understood is that the assessee hasno case that it is claiming investment allowance in respect of aship or an aircraft or machinery or plant which would fallwithin the purview of sub-section 1 of Section 32A of the Act toclaim investment allowance. It cannot relate to any machineryor plant specified in terms of sub-section 2 of Section 32A ofthe Act to bring in the component of know-how within thedomain of Section 32A. Under such circumstances, it cannotbut be held that on the facts and circumstances of the case,the Tribunal was not justified in holding that the assessee isentitled to investment allowance under Section 32A of the Act. This I.T.Reference is answered as above. sd/-Thottathil B.Radhakrishnan, Judge sd/- Anu Sivaraman, Judge sj20/9/True Copy/ P.A. to Judge