32A Allowance: Date of Origional Purchase Agreement to be considered

Date of original purchase contract and not date of revised one would be considered for sec. 32A allowance

[2015] 56 taxmann.com 452 (Gujarat)

HIGH COURT OF GUJARAT

Shaily Eng. Plastics (P.) Ltd.

v.

Deputy Commissioner of Income-tax (Asst.)

Where assessee entered into contract for purchase of certain machinery on 2-5-1986, i.e., before 12-6-1986 being cut off date given in section 32A(8B) but due to escalation in price, revised contract was entered into on 18-8-1986, assets would be presumed to have been purchased before cut off date and would be eligible for investment allowance under section 32A