TITANOR COMPONENTS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) All these appeals by same assessee raise same question of law which has been formulated while admitting the appeals on 19.9.2006. The said question is as under ;

(2.) We have heard Senior Advocate P.J. Pardiwalla with Advocate S.G. Bhobe for the appellant and Advocate S. R. Rivonkar for the respondent/Department.

(3.) The appellant Company came to be incorporated on 7.6.1989 with its registered office in New Delhi. It acquired metal anodes division by name M/s. Western India Match Company Ltd. (WIMCO) by agreement dated 30.11.1989. On 29.11.1996, in the return filed with the Assessing Officer at New Delhi it claimed depreciation under Section 32 of the Income Tax Act, 1961 ("Act" for short) on written down value of the acquired assets. The said written down value was stated on the basis of actual costs incurred by the appellant for acquisition i.e. of Rs. 6,10,02,641/-. The Assessing Officer completed the assessment under Section 143(3) of the Act. But then for the assessment year 1990-91 adopted the written down value of those assets to be at Rs. 3,50,37,238/- by placing reliance upon the surveyor's report. The appellants then filed appeals before the Commissioner of Incometax (Appeals) and on 31.12.1999, the appellate authority, confirmed the order passed by the Assessing Officer. The appellants then approached the Income Tax Appellate Tribunal (ITAT) and the Delhi Bench of ITAT decided the appeals for two assessment years i.e. 1990-91 and 1991-92 upholding the orders of the Assessing Officer. The appellants approached Delhi High Court which admitted on 15.09.2003 their appeals on the question of law as mentioned above. ITA 191/2002 (A.Y. 1990-91) & ITA 190/2002 (A.Y. 1991- 92) are still pending in Delhi High Court.