COMMISSIONER OF INCOME TAX Vs. SUPER DRILLERS

JUDGEMENT

(1.) The assessee in this cases a firm which carries on the business of drilling bore-wells. For the assessment years 1981-82 and 1982-83, it claimed depreciation of 30 per cent. on the rig and compressor used in drilling the bore-wells. The Income-tax Officer allowed the depreciation at ten per cent. being of the view that the assessee was not a "mineral oil concern" and so, the assessee was not entitled to depreciation at 30 per cent. However, on appeal, having regard to the judgment of the Income-tax Appellate Tribunal in the assessee's own case for the assessment year 1979-80, the appellate authority, i.e., the Commissioner of Income-tax (Appeals) granted 30 per cent. depreciation and it was confirmed by the Tribunal. The said view of the Tribunal relating to the assessment year 1979-80 was confirmed by this court by the judgment in CIT v. Super Drillers [1988] 174 ITR 640.

(2.) Further, the assessee also claimed that it is an industrial undertaking carrying on business in drilling bore-wells and, therefore, it is entitled to the relief under section 80J and sections 80HH and 80HHA of the Income-tax Act, 1961. The Income-tax Officer disallowed the said claim. On appeal, the Commissioner of Income-tax (Appeals) confirmed the view of the Income-tax Officer and on further appeal, the Income-tax Appellate Tribunal took the view that the assessee is an industrial undertaking engaged in manufacturing or producing articles or things and, therefore, it is entitled to relief under the said provisions.

(3.) At the instance of the Revenue, the following questions are referred to this court for opinion under section 256 (1) of the Income-tax Act :