AYYAPPAN TEXTILES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE questions referred to us in these references are capable of being disposed of by a common order and by this common order, the references are being disposed of. THE question referred to us is as to whether the amendment effected to the Income-tax (Fourth Amendment) Rules, 1983, on April 2, 1983, is applicable to the assessment of the assessees' income for the assessment year 1983-84. THE assessees claimed that the amendment to the Rule was procedural in nature and that claim was negatived by the Tribunal. THE amendment effected to the Rule which was to the rate at which the depreciation is to be allowed, cannot be regarded as a matter of procedure. It is a substantive right. It is well settled that the law applicable for assessment is the law applicable as on the date of commencement of the assessment year and not the change in the law amended subsequent to that date. THE amending Rule came into force only after the commencement of the assessment year and was not applicable to these assessments.

(2.) THE question referred to us is, therefore, answered against the assessees and in favour of the Revenue. THE Revenue shall be entitled to costs in the sum of Rs. 750 (rupees seven hundred and fifty only) payable in one set.