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TMI Blog1959 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... l engines at a total cost of ₹ 97,996. The cost of installing diesel engines represented approximately half the value of the motor-lorries. Before the Income-tax Officer, the assessee claimed initial depreciation in respect of these diesel engines under section 10(2) (vi), paragraph 2. The Income-tax Officer disallowed the claim and that order was confirmed by the Appellate Tribunal. 2. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it is material, by the first paragraph it is provided that in respect of depreciation of "such buildings, machinery, plant or furniture", a sum equivalent to such percentage on the original cost thereof may be allowed to the assessee as may in any case or class of cases be prescribed; and the expression "such buildings, machinery, plant or furniture", having regard to the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the section. In ascertaining whether initial depreciation has to be allowed therefor, any reference to the rules framed under the Act would, in our judgment, be inappropriate, It is true that the assessee has been allowed normal depreciation on the value of the diesel engines. But, we are not called upon to consider in this reference whether the normal depreciation allowed to the assessee is, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Mr. S. P. Mehta that, because the diesel engines are installed in the vehicles, initial depreciation is allowable to the assessee in respect of those engines. 3. We are also unable to agree with the alternatives contention of Mr. Mehta that these diesel engines constitute "machinery being new which has been installed". In our view, in order that initial depreciation should be al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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