COMMISSIONER OF INCOME TAX Vs. DEVI ENTERPRISES

JUDGEMENT

(1.) AT the instance of the Revenue, the Tribunal has stated a case and referred the following question of law under Section 256(1) of the Income-tax Act, 1961, for our consideration :

(2.) THE assessee is a registered firm. During the course of assessment proceedings for the assessment year 1981-82, the assessee claimed depreciation on rigs, compressors and wagon drills at the rate of 30 per cent. THE Income-tax Officer rejected the claim of the assessee and allowed depreciation at the rate of 10 per cent, on the cost of the rigs, etc. Aggrieved by the order of the Income-tax Officer, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals). Before the Commissioner (Appeals), a specific ground has been raised by the assessee that the rigs, etc., were qualified for higher depreciation at 30 per cent, on the ground that rigs, compressors and wagon drills were used in construction like dams and canals and the grant of depreciation at 10 per cent, by the Income-tax Officer was not correct in law. THE order of the Commissioner (Appeals) also disclosed the fact that the assessee had produced some materials to prove its claim before the Commissioner of Income-tax (Appeals). THE Commissioner of Income-tax (Appeals) allowed the claim of the assessee and held that the assessee was entitled to depreciation on compressors and wagon drills at the rate of 30 per cent, on the cost of the rigs, compressors, etc.