THIAGARAJAR MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred to us at the instance of the assessee, is as to whether the depreciation as per the Income-tax (Fourth Amendment) Rules, 1985, is to be allowed in all cases which are pending on April 2, 1983, irrespective of the assessment year involved or is to be allowed only in 1984-85 and subsequent assessment years ?

(2.) DURING the assessment year 1981-82 with which we are concerned, the Income-tax (Fourth Amendment) Rules, 1983, was not in force. That rule came into force on April 2, 1983, and no retrospective effect has been given to that rule. It is, therefore, obvious that for the assessment year in question, namely, 1981-82, the amendment rules which came into effect from April 2, 1983, could have no application. Our answer to the question that has been referred to us is, therefore, that for the assessment year prior to the date of the commencement of the Amendment Rules, 1983, the rule has no application. The Revenue shall be entitled to costs in the sum of Rs. 750 (rupees seven hundred and fifty only).