2018 (12) TMI 1949 - HC - Income Tax

Depreciation on enclosed withering trough - whether Tribunal was justified in holding that an enclosed withering trough machine is not an energy saving device or a pollution control equipment ? - tribunal justification to hold that enclosed withering trough is not covered under new Appendix-I of the Income Tax Rules, 1962 and is not entitled for higher rate of depreciation - Whether the claim for depreciation on intangible assets acquired on purchase of the Dulabh Cherra Tea Estate, as a going concern, and used while carrying business is allowable under the provisions of the Income Tax Act, 1961? - applicability of section 115JB - HELD THAT - Since the respondents are represented by learned counsel in Court issuance and service of the notice of appeal are dispensed with. Let informal paper books be filed by the Advocate-on-Record for the appellant by 25th January, 2019. The contents of the paper book filed before the tribunal may constitute the paper book in this appeal. A copy thereof should be served on the Advocate-on-Record for the respondent at least four days before the date of hearing of the appeal. All other formalities are dispensed with.

Summary

Issues:
1. Condonation of delay in filing the appeal.
2. Appeal under Section 260A of the Income Tax Act, 1961 with substantial questions of law.

Condonation of Delay:
The High Court of Calcutta allowed the application for condonation of delay in filing the appeal. The delay was condoned, and the appeal was directed to be registered immediately by the department.

Substantial Questions of Law:
The appeal under Section 260A of the Income Tax Act, 1961 raised several substantial questions of law for consideration. These questions included whether the impugned order of the Tribunal was perverse for not considering relevant documents and materials, whether certain equipment qualified for specific tax benefits, the eligibility for higher depreciation rates, the allowance of depreciation on intangible assets, and the applicability of Section 115JB of the Income Tax Act, 1961.

The Court noted that the appeal involved issues such as the consideration of evidence, relevance of documents, and the correctness of findings by the Tribunal. The questions raised encompassed the interpretation of tax laws regarding depreciation, intangible assets, and the applicability of specific provisions such as Section 115JB.

The Court dispensed with the issuance and service of the notice of appeal since the respondents were represented by learned counsel in Court. It directed the filing of informal paper books by a specified date and allowed the contents of the paper book filed before the tribunal to constitute the paper book for the appeal. The matter was scheduled for a future appearance, and the stay application was disposed of accordingly.