COMMISSIONER OF INCOME TAX Vs. ALAGAPPA COTTON MILLS

JUDGEMENT

(1.) THREE questions at the instance of the Revenue were referred to this court for consideration.

(2.) THE first question is as to whether the Tribunal was justified in holding that it had valid materials to hold that depreciation should be allowed on the assets taken over by the new partnership at the enhanced rates, which should be taken as cost of the assets in the hands of the new partnership.

(3.) THE apex court came to the conclusion that the higher rate of development rebate is allowable for yarn also. Applying the principles laid down in the above case and for the reasons stated therein we answer both the questions in favour of the assessee and against the Revenue.