COMMISSIONER OF INCOME TAX Vs. SINGHANIA ENTERPRISES

JUDGEMENT

(1.) THIS is an income-tax reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue and the following question of law has been referred by the Tribunal for answer by this court :

(2.) THE brief facts giving rise to this reference are that while completing the assessment, the Assessing Officer noted that the assessee had claimed depreciation at 100 per cent. on centering material. THE Assessing Officer, however, restricted the same to 33.33 per cent. THE Commissioner of Income-tax (Appeals), on the basis of the order of the Income-tax Appellate Tribunal, Nagpur, in the case of Khare and Tarkunde, allowed the claim of the assessee. On appeal, the Tribunal found that the facts of this case are similar to the facts of the case in Khare and Terkunde--ITAT No. 765/Nag of 1985, dated July 20, 1980, and upheld the order of the Commissioner of Income-tax (Appeals) and dismissed the Departmental appeal. THE Departmental representative placed reliance on the statement of facts annexed to the reference application and contended that the view taken by the Commissioner of Income-tax (Appeals) is not correct, and the assessee is not entitled to 100 per cent. depreciation on centering material. However, the Tribunal by referring to the decision in the case of Khare and Tarkunde, allowed 100 per cent. depreciation. Hence, the Department approached the Tribunal to refer the aforesaid question of law before this court and, accordingly, the Tribunal has referred the said question of law to this court.

(3.) WE, therefore, direct the Tribunal to examine the aforesaid factual aspect and determine the question whether each plate of the centering material can constitute a plant or not. WE remand this case for the Tribunal to record its finding and decide the matter afresh. Reference is accordingly answered.