CEMENT AGENCIES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference on a case stated under S. 256(1) of the IT Act, 1961 (referred to hereinafter as "the said Act"). There are two questions referred to us in this reference, which run as follows :

(2.) THE learned counsel for the respective parties agree that in of the decision of this Court in Associated Cement Co. Ltd. vs. CIT (1982) 27 CTR (Bom) 210 : (1981) 127 ITR 560 (Bom), question No. 1 aforesaid is concluded against the assessee. In view of this, we only propose to consider the relevant facts in so far as question No. 2 is concerned.

(3.) SEC . 32 of the said Act deals with the question of depreciation. The opening portion of Sub S. (1) of S. 32 r/w cl. (iii) runs as follows :