COMMISSIONER OF INCOME TAX Vs. TRANSPEK INDUSTRY LTD

JUDGEMENT

(1.) THIS is the reference at the instance of the Revenue under s. 256(1) of the IT Act, 1961 ('the Act'). The following question of law has been referred to us by the Tribunal. Ahmedabad Bench 'C', for asst. yr. 1983-84 :

(2.) THE assessee, a limited company, claimed depreciation at the rate of 15 per cent on diesel generating set stating that the same was a part and parcel of the same machinery which was owned and used by the assessee. It was further stated by the assessee that the plant and machinery came in contact with corrosive chemicals and all other plant and machineries were allowed depreciation at the rate of 15 per cent and hence the diesel generating set, which was a part of the same machinery, was also entitled to depreciation at the rate of 15 per cent. THE AO granted the claim of the assessee.

(3.) IT is pertinent to note that over and above reliance on the different Benches of the Tribunal, in the present case, the Tribunal has also taken note of the fact that depreciation had been allowed on the same machinery at the rate of 15 per cent to the assessee for all the preceding assessment years and also subsequent years. In our opinion, in light of this peculiar factual position, it is not necessary to interfere with the finding recorded by the Tribunal and we hold that the Tribunal was justified in law in directing the AO to allow depreciation at the rate of 15 per cent on the diesel generating set.