9911796707
TMI Blog1996 (3) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax, Bhopal) has filed this application under section 256(2) of the Income-tax Act, 1961 (for short, "the Act"), seeking direction to the Tribunal to state the case and refer the proposed questions of law, as extracted below, arising out of the order dated June 28, 1991, passed by it in I. T. A. No. 337/(Ind) of 1989 after rejection of its application under section 256(1) of the Act registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment made by the Assessing Officer was prejudicial to the interests of the Revenue ? " Briefly stated, the facts of the case are that capital subsidy was deducted (sic) by the Assessing Officer while considering allowance of depreciation from the cost of assets. Besides this, the Assessing Officer had also allowed depreciation at the rate of 100 per cent. on the cost of gas cylinders. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Claim of depreciation at the rate of 100 per cent. on the cost of gas cylinders at Rs. 35,87,390 which included a sum of Rs. 4,62,766 being the amount of pre-production expenditure allocated on pro rata basis. The Tribunal held that the Income-tax Officer rightly computed the depreciation without deducting the amount of capital subsidy from the cost of the assets on placing reliance on CIT v. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o expenditure was involved in installation. The Tribunal held that gas cylinders are part of the plant and machinery for commencement of production of gas for marketing. The Tribunal thus held that the order passed by the Commissioner of Income-tax under section 263 of the Act was meritless. On following the aforesaid two decisions, the Tribunal allowed the appeal of the assessee. The applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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