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TMI Blog2002 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... also submitted that if the amount has been spent which is not liable to the cost of building, machinery, plant or furniture then no depreciation is allowable and it raises a question of law - we allow this application and direct the ITAT, to state the statement of case and refer the following question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,120. In the opinion of the Commissioner of Income-tax (Appeals), the assessee was entitled to depreciation of pre-operative expense, i.e., before the commencement of production. Accordingly, he allowed the claim. The order of the Commissioner of Income-tax (Appeals) was upheld by the Income-tax Appellate Tribunal. It is contended by Mr. R.B.Mathur, learned counsel for the Department, that un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 32 at the relevant time of the assessment year 1977-78. We have read the said judgment. The apex court in the case of Challapali [1975] 98 ITR 167 has proceeded on the basis of definition of "actual cost". In view of this it cannot be said that the controversy involved is concluded by the Challapalli case [1975] 98 ITR 167. In our view a referable question of law arises in the instant referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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