COMMISSIONER OF INCOME TAX Vs. PREMIER AUTOMOBILES LIMITED

JUDGEMENT

(1.) THE Tribunal has, at the instance of the Department, referred to this Court the following two questions as questions of law under S. 256(1) of the IT Act, 1961 :

(2.) THE proceedings relate to the asst. yrs. 1968 69 and 1969 70. Counsel are agreed that, in view of this Court's judgment in the assessee's own case in Premier Automobiles Ltd. vs. CIT (1984) 41 CTR (Bom) 184:(1984) 150 ITR 28 (Bom), the first question must be answered in the negative and in favour of the Revenue. However, the Department, it appears, has gone to the Supreme Court and the matter is pending in the Supreme Court. It is, therefore, necessary to clarify that in case this Court's judgment is reversed by the Supreme Court, the assessee will be entitled to depreciation. In the above view of the matter, while the question is answered in the negative and in favour of the Revenue, the Department is directed to allow the assessee depreciation as allowed by the Tribunal in case our Court's judgment is eventually reversed by the Supreme Court.

(3.) NO order as to costs.