- (1.) THIS is an appeal under Section 260A of the Income -tax Act, 1961, on behalf of the Department against the order dated May 6, 1999, passed by the Income -tax Appellate Tribunal, Agra Bench, Agra, in I.T.A. No. 4747(Delhi) of 1991.
(2.) THE assessment year involved is 1989 -90. The assessee is maintaining its accounts in the mercantile system of accounting. It has purchased two machineries worth Rs. 3,35,806. The purchases were made through bills dated July 30, 1988 and December 15, 1988. The machinery purchased through bill dated December 15, 1988, amounting to Rs. 1,74,145 was paid subsequently in the subsequent assessment year. The assessee before the Assessing Officer claimed that he is entitled to get the benefit under Section 32AB of the Income -tax Act on this amount also. The said claim was rejected by the Assessing Officer as well as the first appellate authority. The Tribunal accepted the said claim. The Tribunal has found that the assessee purchased the machineries during the year under consideration and in view of the fact that the assessee is maintaining his accounts in mercantile system is entitled for the deductions. Having heard learned Counsel for the parties we do not find any error in the order of the Tribunal. The Tribunal has recorded a finding that the assessee is maintaining his accounts in mercantile system and, therefore, in view of Section 43(2) of the Act is entitled to the benefits under Section 32AB of the Income -tax Act. The finding recorded by the Tribunal does not suffer from any manifest error of law.
(3.) THERE is no merit in the appeal. The appeal is accordingly dismissed with costs.;