COMMISSIONER OF INCOME TAX Vs. AMCO BATTERIES LIMITED

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961. The following questions of law have been referred for our opinion :

(2.) THE assessee is engaged in the manufacture of batteries. It also has a separate division for making rubber containers which are required for manufacturing batteries. In respect of moulds used for making rubber containers, depreciation at the rate of 40 per cent. was claimed by the assessee under E(2) of item III, Depreciation Schedule under rule 5, which reads thus :

(3.) THE Tribunal, as a matter of fact, found that the assessee, though a manufacturer of batteries, has got a separate division in its factory for making rubber containers which are used for making batteries and which are not sold in the market. On the moulds used for making rubber containers, the assessee had claimed depreciation at 40 per cent. THErefore, no infirmity can be found in the conclusion reached by the Tribunal that the assessee was engaged in the manufacture of rubber goods and the rubber containers used for batteries manufactured by it and thus entitled to depreciation at 40 per cent. on moulds. THErefore, we have to answer the first question referred to us in the affirmative and against the Revenue.