{"id":52452,"date":"2025-03-31T12:27:49","date_gmt":"2025-03-31T06:57:49","guid":{"rendered":"https:\/\/itatonline.org\/digest\/maheswari-mining-and-energy-p-ltd-v-acit-2024116-itr-75-162-taxmann-com-574-tm-hydtrib\/"},"modified":"2025-03-31T12:27:49","modified_gmt":"2025-03-31T06:57:49","slug":"maheswari-mining-and-energy-p-ltd-v-acit-2024116-itr-75-162-taxmann-com-574-tm-hydtrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/maheswari-mining-and-energy-p-ltd-v-acit-2024116-itr-75-162-taxmann-com-574-tm-hydtrib\/","title":{"rendered":"Maheswari Mining and Energy P. Ltd. v. ACIT (2024)116 ITR 75 \/ 162 taxmann.com 574 (. TM) (Hyd)(Trib)"},"content":{"rendered":"

On appeal by the assessee, the Judicial Member held in favour of the assessee, while the Accountant Member affirmed the disallowance. On a reference to a Third Member \u00a0allowing the appeal\u00a0 the Tribunal held that\u00a0 the undertaking was set up subsequent to April 1, 2015 and the new asset was acquired and installed during the period between April 1, 2015 and March 31, 2016. A combined reading of the Memorandum Explaining the provisions in the\u00a0Finance Bill, 2015\u00a0as well as the CBDT Circular No. 19 of 2015\u00a0[2<\/sup>\u00a0<\/a>clearly mentioned that the provisions of section\u00a032AD\u00a0were applicable from assessment year 2016-17 for a period of 5 years. Therefore, the provisions of section\u00a032AD\u00a0of the Act, were applicable for the investment made in financial year 2015-16, i. e., assessment year 2016-17. \u00a0\u00a0That the notification issued by the CBDT on July 20, 2016 did not keep the operation of the provisions of section\u00a032AD\u00a0of the Act in abeyance till July 20, 2016. The notification stating that it shall come into force as on the date of its publication in the Official Gazette cannot override the provisions of section\u00a032AD(1)\u00a0of the Act.\u00a0 That since section\u00a032AD\u00a0is\u00a0 a beneficial provision and the assessee fell in the beneficial provision, the provision as well as the notification needs to be interpreted liberally, i. e., in favour of the assessee and the assessee is\u00a0 entitled to deduction under section\u00a032AD. Held that \u00a0Section\u00a032AD(1)\u00a0requires the executive to notify the areas constituting backward areas in the relevant States and to that extent it cannot be said that section\u00a032AD(1)\u00a0is complete on its own. Even according to the Revenue, Parliament required the executive to issue the notification specifying what areas constitute the backward areas in the relevant States, but not in respect of the future date of promulgation or the provision nor with applicability or withdrawal of the provision to any class of persons, areas or properties. The provision itself is in the nature of beneficial legislation favourable to the assessee, and the notification neither brings the provision into force on any later day nor does it extend or exempt the operation of the provision to any class of persons, properties or areas. It only specifies details regarding the backward areas in the relevant States for implementation of the provision. The notification is neither taxing nor exempting the tax either in full or in part to any class of assessees but it only specifies the details requisite for implementation of the section. Issuance of notification\u00a0 by the CBDT is only pursuant to the delegated legislation, but not a conditional legislation(AY.2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"

S. 32AD : Investment in new plant or machinery in notified back ward areas in certain States-Additional investment allowance-Notification specifying backward area relates back to 1-4-2015-Entitle to additional investment allowance-The notification is neither taxing nor exempting the tax either in full or in part to any class of assessees but it only specifies the details requisite for implementation of the section-Issuance of notification by the CBDT is only pursuant to the delegated legislation, but not a conditional legislation-Circular No. 19 of 2015, dt. 27-11-2015 (2015) 379 ITR 19 (St), Notification dated 20-7-2016(2016) 386 ITR 6 (St)) <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-52452","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dE0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=52452"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52452\/revisions"}],"predecessor-version":[{"id":52453,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52452\/revisions\/52453"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}