COMMISSIONER OF INCOME TAX Vs. VINAR PVT LTD

JUDGEMENT

(1.) The assessment out-of which this reference arises is m respect of the assessment year 1959-60; the relevant previous year ended on the 31st March, 1959. The assessee is a company. The assessee had purchased certain plant and machinery of the value of Rs. 2,23,257 between 15th November, 1955, and 1st July, 1958. After setting off the price of the machinery sold during the relevant previous year, the assessee claimed both normal and additional depreciation on Rs. 2,10,445 for the assessment year in question. The Income-tax Officer allowed normal depreciation under the provisions of Section 10(2)(vi) of the Indian Income-tax Act, 1922, but he disallowed the assessor's claim for additional depreciation under Section 10(2)(via) of the Act amounting to Rs. 29,618. There was an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner held that, according to Section 10(2)(via) of the Indian Income-tax Act, 1922, the additional depreciation was allowable upto and including the assessment year 1958-59. There was a further appeal before the Tribunal. The Tribunal was of the opinion that there was certain amount of ambiguity in the section and held that it should be construed in favour of the taxpayer and as such allowed the claim for additional depreciation in respect of the same year.

(2.) On an application being made under Section 66(1) of the Indian Income-tax Act, 1922, the following question has been referred to this court:

(3.) Sub-section (via) to Section 10(2) of the Indian Income-tax Act, 1922, was introduced by Section 11 of the Taxation Laws (Extension to Merged States and Amendment) Act, 1949. The sub-section, as it originally stood, provided as follows, so far as is material for the purpose of this reference after leaving out the proviso :--