COMMISSIONER OF INCOME TAX Vs. GUJARAT GUARDIAN LTD

JUDGEMENT

(1.) The Revenue is aggrieved by an order dated 30th May, 2005 passed by the Income Tax Appellate Tribunal, Delhi Bench "F" in I.T. Appeals No.4118 and 4119 (Del) of 2001 relevant for the assessment years 1994-95 and 1995-96.

(2.) In this appeal under Section 260A of the Income Tax Act, 1961 (the Act), we are concerned only with the assessment year 1994-95.

(3.) The question that has arisen for our consideration is whether the assessee is entitled to depreciation on account of capitalization of engineering service fees paid to a foreign company or whether the assessee is entitled to a deduction under Section 35AB of the Act. According to the Tribunal, the assessee is entitled to depreciation on account of capitalization of engineering service fees and it is this conclusion that has been disputed by the Revenue.