Indira Banerjee, J. - (1.) THE short question involved in this appeal is, whether the respondent assessee is entitled to claim investment allowance under s. 32A of the IT Act, 1961, on the value of bottle washer machine, leased out by the assessee, as part of its business, and even assuming that the assessee is so entitled, whether the learned Tribunal could have, in the facts and circumstances of the case, rectified and recalled its earlier order in the appeal, confirming disallowance of investment allowance on the machine. The respondent assessee carries on business, inter alia, of leasing and hiring out plant, machinery, equipment, vehicles etc. The assessee filed its IT return for the asst. yr. 1989 -90 inter alia claiming investment allowance under s. 32A of the IT Act @ 20 per cent of Rs. 7,36,650, that is, the value of bottle washer machine.
(2.) AN order of assessment was passed under s. 143(3) of the IT Act, rejecting the claim of the respondent assessee to investment allowance on bottle washer machine. The appeal filed by the assessee before the CIT(A) was dismissed. The assessee filed an appeal before the Tribunal. The learned Tribunal confirmed the order of the CIT(A), relying on the judgment of the Supreme Court in CIT vs. Narang Dairy Products : (1996) 133 CTR (SC) 65 : (1996) 219 ITR 478 (SC).
(3.) IN CIT vs. Narang Dairy Products (supra) the Supreme Court held that under s. 33(1)(a) of the IT Act, 1961, development rebate was only allowed in respect of new machinery and plant, which was owned by the assessee and was wholly used for the purpose of business carried on by the assessee.;