COMMISSIONER OF INCOME TAX Vs. AIRCEL LIMITED

JUDGEMENT

(1.) THIS appeal is directed against the order of the Income-tax Appellate Tribunal dated 22. 9. 2006 made in ITA No. 955/mds/2006 for the assessment year 2000-01, raising the following substantial questions of law:

(2.) 2. 1. The Revenue is the appellant. The assessee is a company engaged in the business of providing cellular mobile telephony service. For the assessment year 2000-01, even though the assessee did not claim depreciation, the Assessing Officer, allowed the depreciation to an extent of Rs. 36,91,12,722/-, holding that allowing depreciation is mandatory.

(3.) THE learned standing Counsel for the Revenue fairly concedes that the issues are squarely covered against the Revenue by the decision of the Apex Court in Commissioner of Income Tax v. Mahendra Mills, [2003] 243 ITR 56, which was followed by this Court in CIT v. Sree Senha Valli Textils P. Ltd. , [2003] 259 ITR 77.