SIDDARTH AGENCIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee M/s Siddarth Agencies, Madras, is a registered firm, carrying on business in poultry farming.

(2.) (a) For the asst. yr. 1983 -84, the assessee claimed depreciation on building used by it to house the cages for keeping of fowls, at the rate applicable to third class buildings by treating them as factory buildings. (b) The ITO rejected the assessee's claim and allowed depreciation in respect of such buildings at the rate applicable to non -factory buildings. (c) Aggrieved by the order of the ITO, the assessee preferred an appeal before the CIT(A), who, following the order of his predecessor in the assessee's own case for the asst. yr. 1982 -83, upheld the ITO's, order. (d) The aggrieved assessee preferred an appeal before the Tribunal. (e) The Tribunal rejected the assessee's appeal by following its own order for the asst. yr. 1982 -83 in ITA No. 2056/Mds/84, dated 25th October, 1985. (f) It is on these facts, the Tribunal, at the instance of the assessee referred the question of law as below, under s. 256(1) of the IT Act, 1961, for the opinion of this Court.

(3.) IN the old Appendix I, the buildings for the purpose of depreciation were classified into three categories -First class buildings, second class buildings and third class buildings. The depreciation rate prescribed for the abovesaid three classes of buildings is respectively 2.5 per cent, 5 per cent and 7.5 per cent. Any of these buildings if used as factory buildings, excluding offices, godowns, officers' and employees' quarters, the prescribed rate of depreciation for the specified class of building will be doubled.