1984 (2) TMI 26 - HC - Income Tax

Summary

The High Court of Delhi ruled that the Tribunal was justified in holding that section 154 of the Income-tax Act could not be used to reduce depreciation allowed in the original assessment. The case involved a dispute over the depreciation of plant and machinery used in the business of chemicals and ethyl alcohol. The Tribunal concluded that both active and passive use of machinery entitled the assessee to depreciation, citing Section 32 of the Act. The Court found the issue debatable and not suitable for rectification under section 154.