PRINCIPAL COMMISSIONER INCOME TAX Vs. BHAGAT TEXTILE ENGINEERS

JUDGEMENT

(1.) This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act, 1961") is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Surat Bench, Surat dated 28th June 2018 in the ITA No. 1536/Ahd/2016/SRT for the assessment year 2010-11.

(2.) The Revenue has proposed the following substantial questions of law:

(3.) We take notice of the fact that the issue before the Tribunal was whether the Commissioner of Income Tax erred in passing the order passed under Section 263 of the Act, 1961 treating the order passed under Section 143(3) by the Assessing Officer as erroneous on the premise that the assessee was not eligible to claim depreciation at the rate of 50% on a new motorcar purchased in accordance with sub-clause (VI) of clause III of Part - A of the New Appendix - I of the Act, 1961. The Tribunal, while allowing the appeal preferred by the respondent-assessee, held as under: