Apar Industries Ltd Vs DCIT (ITAT Mumbai)
In Apar Industries Ltd Vs DCIT, the Income Tax Appellate Tribunal (ITAT), Mumbai, examined whether a fresh claim for deduction under Section 32AC of the Income-tax Act, 1961, raised for the first time during appellate proceedings, could be rejected solely on the grounds of delay. The assessee, engaged in manufacturing conductors, cables, and transformer oil, filed its return for AY 2015–16 declaring income under normal and book profit provisions. During appellate proceedings before the Commissioner of Income-tax (Appeals), the assessee raised an additional claim of ₹19.11 crore as investment allowance, being 15% of eligible investment in new plant and machinery amounting to ₹127.42 crore made during the prescribed period.
The CIT(A) admitted the additional ground relying on judicial precedents but rejected the claim on merits. The rejection was based on reasons including delayed filing of the claim, difficulty in verifying conditions after a long lapse of time, and an inference that the claim was deliberately postponed to avoid scrutiny. The CIT(A) held that verification of whether assets were “new,” installed, and used for business purposes was not feasible after several years and concluded that such delayed claims could not be entertained substantively.
During remand proceedings, the Assessing Officer objected to admissibility but verified extensive documentary evidence including invoices, delivery challans, and installation details. The officer found that documents were consistent with books of account, though no conclusive finding was recorded on whether statutory conditions under Section 32AC were fully satisfied, particularly regarding classification as “new assets.”
