ITAT allows section 32A deduction based on aggregate amount of investment allowance & investment allowance reserve

Gail (India) Ltd. Vs DCIT (ITAT Delhi) So far as the satisfaction of relevant conditions u/s 32 is concerned, the AO in the original order had expressed reservation on the grant of investment allowance during the current year as in his view, 75% of the reserves were not created in the current year. In terms of the provisions of sub-section (4) of section 32A of the Act, an assessee is required to debit an amount equivalent to 75% of investment allowance to P&L A/c and credit it to investment allowance reserve of any previous year in respect of which deduction under that section is being cl...