COMMISSIONER OF INCOME TAX Vs. BINNY LIMITED

JUDGEMENT

(1.) THE above tax case appeal is directed against the order of the income-tax Appellate Tribunal in ITA. No. 1313/mds/1996, dated 18. 11. 2004.

(2.) THE Revenue is the appellant. The assessment year involved is 1 990-1991. The assessee is a Public Limited Company, engaged in the business of manufacture and sale of textiles, machineries and real estates. For the assessment year 1990-1991, the assessee Company filed return of income on 31. 12. 1990 admitting NIL income. The same has been processed under section 143 (1) (a) of the Income Tax Act and notices under section 143 (1) has been issued to the assessee and the case was heard on several hearing dates. The assessing Officer noticed that the assessee had not claimed depreciation. The case of the assessee was that it had a choice in the matter of claiming deduction on account of depreciation in its return of income. The assessing officer did not accept the said contention and arrived at the total income of the assessee after allowing depreciation on the basis of the details furnished by the assessee.

(3.) THE assessee, not satisfied with the order of assessment dated 1. 3. 1993, preferred an appeal before the Commissioner of Income Tax (Appeals ). The Commissioner of Income Tax (Appeals), by his order dated 17. 10. 1998, confirmed the order of assessment dated 1. 3. 1993.