COMMISSIONER OF INCOME TAX Vs. INDIA CARBON LTD

JUDGEMENT

(1.) IN this income -tax reference the following question has been referred to this Court for opinion :

(2.) THE assessee, a public limited company, for the asst. year 1985 - 86 claimed depreciation of Rs. 1,14,997 in respect of a temple constructed within the factory premises. The AO disallowed the same on the ground that it was a non -factory building and the temple had nothing to do with the business of the assessee - company. The assessee being aggrieved took up the matter in appeal before the CIT (A.) The CIT (A) held that the temple was for the welfare of the staff of the assessee - company and it was having a direct link or attributable aspect with the business activities of the assessee. Therefore, the CIT (A) allowed depreciation. Being aggrieved the Revenue preferred an appeal before the Tribunal. The Tribunal following the decision in Atlas Cycle Industries Ltd. vs. CIT (1981) 21 CTR (P&H) 123 : (1982) 134 ITR 458 (P & H) upheld the order of the CIT (A.) Heard Mr. G. K. Joshi, learned standing counsel for the Revenue, and Dr. A. K. Saraf, learned counsel appearing on behalf of the assessee. It is submitted by learned counsel for the parties that the case is covered by the decision of this Court in CIT vs. Associated Flour Mills Pvt. Ltd. [1996] 221 ITR 123 (Gau). We have gone through the judgment. In our opinion, the question referred is squarely covered by the said decision. Accordingly, we answer the question in the affirmative, in favour of the assessee and against the Revenue.