2010 (8) TMI 73 - HC - Income Tax

Reference - whether the assessee should have been allowed depreciation at 15 percent, or at 10 per cent? Tribunal allowed the depreciation at 15 percent. Held that - where in respect of assessment year 1975-76 the reference was returned unanswered because of insubstantial tax effect. The same reason applied to the assessment year 1977-78.

Summary

The High Court of Delhi ruled in favor of the assessee, allowing depreciation at 15 percent on plants used in manufacturing of cement. The Income-tax Appellate Tribunal supported this decision based on previous rulings. The reference for the assessment year 1977-78 was returned unanswered due to insubstantial tax effect.