KARPAGAMBAL MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee, Sree Karpagambal Mills Limited, Raja-palayam, is a public limited company, owning a spinning mill. In the return for the assessment year 1981-82, the assessee claimed depreciation at the rate of 10 per cent. on general plant and machinery. This was on the basis of the deprecation schedule in Appendix I in the Income-tax Rules, as it stood before the Income-lax (Fourth Amendment) Rules, 1983, which took effect from April 2, 1983.

(2.) THE Income-tax Officer allowed the claim of the assessee on the same basis,

(3.) ARGUMENTS of Mr. K. Vaitheeswaran, learned counsel, representing Mr. Subbaraya Aiyar, learned counsel appearing for the assessee, and of Thiru S. V. Subramaniam, learned senior counsel appearing for the Revenue, were heard. Rule 5 of the Income-tax Rules, 1962, provides for depreciation. Sub-rule (1) of rule 5, which is relevant for our present purpose, reads as under :