CIT Vs. INDIAN METAL INDUSTRIES

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, New Delhi has referred the following question of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act), for opinion to this court : 'Whether the Honble Tribunal is correct in directing the Income Tax Officer to allow depreciation on generator at the rate of 20 per cent?'

(2.) BRIEFLY stated that facts giving rise to the present Reference are as follows : The present Reference relates to the assessment year 1984 -85. During this year the respondent -assessee had claimed depreciation at the rate of 20 per cent on generator which was disallowed by the Income Tax Officer. However, in appeal the Appellate Assistant Commissioner accepted the claim of the respondent -assessee. The revenues appeal before the Tribunal has failed.

(3.) WE find that in the Appendix I, which provides for rates of depreciation on different items during the relevant assessment year, as the generator has not been specifically mentioned in list of the items of special rate and, therefore, general rate of depreciation of machinery and plant which is 10 per cent per annum shall be admissible. It may be mentioned here that the generator even does not fall under any other item under special rate nor there is any such finding or authority that the generator is covered under any of the items.