9911796707
TMI Blog2007 (6) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Income Tax Appellate Tribunal, Madras "A" Bench dated 13.10.2006 in ITA No.2343/Mds/2004, raising the substantial question of law as to whether the Tribunal was right in allowing depreciation on "Chlorine Containers" claimed by the assessee at 100% wherein the rule specifically states that 100% depreciation is available only on "Gas cylinders including valves and regulators", under the following facts and circumstances of the case. 2. The relevant assessment year is 1996-97. The assessee company is engaged in the manufacture and sale of chemicals. Even though the assessment for the year 1996-97 was completed on 18.3.1999, the same was re-opened by issuing notice under section 148 of the Income-tax Act. During the re-assessment, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only at 25% treating the asset in question as a normal machinery and plant and not as a gas cylinder including valves and regulators, by his assessment order dated 21.3.2002. 4. Against which, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), who by order dated 23.7.2004 confirmed the order of the assessing officer, which necessitated the assessee to prefer a further appeal before the Income-tax Appellate Tribunal, which, following a decision of the Delhi High Court in Commissioner of Income-tax vs. Goyal MG Gases Ltd., reported in (2006) 201 CTR 342, allowed the appeal and granted 100% depreciation. Hence, the above appeal. 5. Concededly, there is no dispute with regard to the following material facts:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ix-I of the Rules, as it is a settled law that the statute should be read as it is without distorting or twisting its language. 7. In a case where the statutory provision is plain and unambiguous, the Court shall not interpret the same in a different manner, only because of harsh consequences arising therefrom; and it is well known that the Court can iron out the creases but it cannot change the texture of the fabric, cannot enlarge the scope of legislation or intention when the language of the provision is plain and unambiguous, cannot add or substract words to a statute or read something into it which is not there and cannot rewrite or recast legislation, vide NASIRUDDIN v. SITA RAM AGARWAL [2003] 2 SCC 577. There should be a literal rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the rate of 25 percent as eligible to "plants and machineries". While deciding the issue whether the item claimed by the assessee therein is gas cylinders or machinery, the Division Bench has found that there is no dispute that the item in question was gas cylinder, though no doubt a big one and that the expression 'gas cylinders' used in Appendix I to the IT Rules does not mention the size of the gas cylinders nor does it say that gas cylinders should be only for cooking purpose or for any other particular purpose and any interpretation of the expression 'gas cylinders' to mean 'cooking gas cylinder', would be really adding words to the statute which is not permissible. Accordingly, the Division Bench of the Delhi High Court held that ga ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
