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TMI Blog1997 (8) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... x Reference No. 26 of 1992, the following question has been referred : " Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in granting the depreciation at 40 per cent. on the aircraft jointly owned by the assessee holding that this item of machinery falls under item E(1) of Part I of Appendix I of the Income-tax Rules, 1962, when in fact the said machinery falls under item D(1) " Aeroplane---Aircraft " of Part I of Appendix I, entitled to depreciation at 30 per cent. only? " Both these references pertain to the very same assessee. Income-tax Reference No. 18 of 1992 relates to the assessment year 1978-79 and Income-tax Reference No. 26 of 1992 to the assessment year 1981-82. The controvers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subramanian, learned counsel for the Revenue, submits that " aircraft " having been specifically mentioned in item D(1) of the Depreciation Table, the assessee is entitled to depreciation at the rate of 30 per cent. only. According to him, item E(1) was applicable only to " aero-engines " and not to " aircrafts ". Mr S. M. Inamdar, learned counsel for the assessee, on the other hand, submits that the aircraft owned by the assessee cannot be brought under item D(1) of the Depreciation Table because it was " heavier---than---air ". According to him, the aircraft mentioned in item D(1) means only aircrafts like helicopters, gliders or balloons. His submission is that an aircraft which is heavier---than---air has to be treated as " aeroplane--- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raft' means any machine which can derive support in the atmosphere from reactions of the air (other than reactions of the air against the earth's surface) and includes balloons, whether fixed or free, airships, kites, gliders and flying machines. " In fact, aircraft is a word of wide import. It includes any mechanically driven flying machine. According to Encyclopedia Britannica (Macropaedia) Vol I : " All aircraft fall into two general categories---lighter-than-air or heavier-than-air. Several distinct types are recognised within each group. Each may perform a variety of missions calling for modifications for special usage. Lighter-than-air craft rise and float because they displace a volume of air the weight of which is equal to or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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