COMMISSIONER OF INCOME TAX Vs. PAWAN KUMAT GARG

JUDGEMENT

(1.) CHANDIGARH Bench, Chandigarh in ITA No. 374/Chd/1978 -79 : "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that harvesting

(2.) ACCORDING to the facts as disclosed in the statement of the case the AO has passed an assessment order granting depreciation on harvesting machine at the rate of 30 per cent. Thereafter, a statutory notice under s. 154 of IT Act, issue is debatable and cannot be reopened by invoking the provisions of s. 154. The assessee placed reliance on the already been set at rest. However, the AO proceeded to rectify his mistake and allowed 10 per cent of depreciation instead of 30 per cent by adding a sum of Rs. 39,764 (Rs. Thirty nine thousand seven hundred sixty four only). The order of the AO was upheld by the AAC. When the assessee approached the Tribunal, Chandigarh Bench in ITA No. 374/Chd/1978 -79 in respect of the asst. yr. 1975 -76, the Tribunal posed the question as to whether harvesting combine was entitled to 30 per cent depreciation in respect of the asst. yr. 1975 -76 or whether depreciation at the rate of 30 per of Appendix I to the IT Rules, 1962. The Tribunal placed reliance on its earlier order passed in Punjab Agro Industries Corpn. Ltd. vs. ITO (ITA Nos. 27/Chd.1978 -79 and 97/Chd/1979; Asst. yr. 1971 -72), it placed reliance on the following portion of its earlier order which reads as under :

(3.) ON the basis of the aforementioned observation made in the order, the Tribunal concluded that the harvesting no justification for the AO to withdraw the depreciation of Rs. 39,764 (Rs. Thirty nine thousand seven hundred sixty four only) by invoking s. 154 of the Act and upholding of the same by the AAC.