(1.) Since Registry has not been able to send the file on account of fire in the court premises, learned counsel for the Revenue has furnished copy of paper book which is taken on record. We proceed to decide the matter after hearing learned counsel for the parties.
(2.) This appeal has been preferred by the Revenue under section 260A of the IT Act, 1961 (''the Act'') against order dt. 3rd Oct., 2007 passed by the Tribunal, Chandigarh Bench A, Chandigarh in ITA No. 20/Chd/2007, for the asst. yr. 1995-96, claiming following substantial questions of law :
(3.) The assessee is a co-operative society and claimed depreciation on the machinery which was not actually used but was kept ready for use. The AO did not allow the claim for depreciation on the ground that machinery had not been actually put to use. On appeal, the CIT(A) upheld the order of the AO but the Tribunal accepted the plea of the assessee as follows :