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TMI Blog1992 (4) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner (Appeals) who directed the Inspecting Assistant Commissioner to allow depreciation on roads, walls and fences ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner (Appeals) who directed the Inspecting Assistant Commissioner to allow extra shift allowance on water system and sanitation ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner (Appeals) who directed the Inspecting Assistant Commissioner to allow depreciation on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision rendered in the very assessee's case in Income-tax Reference Case No. 272 of 1985 (CIT V. H.M.T. Ltd. (No. 2) [1993] 203 ITR 818 (dated November 28, 1991). Following the said decision, the question is answered in the affirmative and in favour of the assessee. The third question is covered by the decision of this court reported in CIT v. Motor Industries Co. Ltd. [1988] 173 ITR 374. Following the said decision, the question is answered in the affirmative and in favour of the assessee. The fourth question is covered by the decision of this court reported in Ravi Machine Tools (P.) Ltd. v. CIT [1978] 114 ITR 459 (sic). Following the said decision, the question is answered in the affirmative and in favour of the assessee. Re : Ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, according to the Revenue, the value of the asset would get reduced to the extent of the deductions by the time the asset is diverted for user in the main business of the assessee. This contention was not accepted by the Appellate Tribunal. The Tribunal observes that, "it is not denied that the assets are still being used for scientific research" and, therefore, these assets are not entitled to any depreciation at all but for a deduction under section 35(1)(iv). The Tribunal further observed that, for the purpose of section 80J, the meaning of the term "actual cost" stated in section 43(1) without reference to Explanation 1 has to be applied. The Tribunal also has noted that it was not the case of the Revenue that the assets in questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority : Provided that where the actual cost of an asset, being a motor car which is acquired by the assessee after the 31st day of March, 1967, but before the 1st day of March, 1975, and is used otherwise than in business of running it on hire for tourists, exceeds twenty-five thousand rupees, the excess of the actual cost over such amount shall be ignored, and the actual cost thereof shall be taken to be twenty-five thousand rupees. Explanation 1. -Where an asset is used in the business, after it ceases to be used for scientific research related to that business and deduction has to be made under clause (ii) of sub-section (1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other situations wherein actual cost will have to be computed for any other purpose. Hence, it is not possible for us to accept the contention of learned counsel. Therefore, question No. 5 is answered in the affirmative and in favour of the assessee. Re : Question No. 6: Section 80AB was introduced with effect from April 1, 1981, and, therefore, it governs the assessment year in question. On this aspect, there is no dispute. The section reads as follows : "80AB. Where any deduction is required to be made or allowed under any section (except section 80M) included in this Chapter under the heading 'C-Deductions in respect of certain incomes' in respect of any income of the nature specified in that section which is included in the gross ..... X X X X Extracts X X X X X X X X Extracts X X X X
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