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TMI Blog1988 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... consequently whether such machinery is entitled to depreciation at 15% under item-7 of entry III (ii)B of Part I of Appendix I of the Income -tax Rules, 1962 ?" The assessee, a public company, carries on business, inter alia, in the manufacture and sale of sugar. In connection with the income-tax assessment years 1977-78 and 1978-79, the assessee put forward a claim that it was entitled to depreciation on its plant and machinery at 15%. That depreciation was allowed. Later on, the successor Income-tax Officer seems to have realised that the allowance of depreciation at 15% was erroneous and that the correct rate of depreciation to be allowed was only the general rate at 10%. In that view, the assessments for the years 1976-77, 1977-78 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation at the higher rate of 15%. The Tribunal also referred to the decision of the Punjab and Haryana High Court in CIT v. Saraswati Industrial Syndicate Ltd. [1982] 136 ITR 758, and observed that the authorities below followed the ratio of the judgment of the Punjab and Haryana High Court in arriving at the conclusion that the appellant is entitled to depreciation only at 10%. In that view, the Tribunal held that there was no infirmity in the orders of the authorities below. Aggrieved by the order of the Tribunal, the assessee sought for this reference under section 256(1). The question referred for consideration of this court has already been extracted above in paragraph 1, at page 226. We have heard Sri S. Parvatha Rao, learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sugar. All that was said was that the depreciation claim of 15% was allowed initially (obviously without investigating into the matter). When the Punjab and Haryana High Court decision was noticed and the proceedings Linder section 148 were taken, the assessee pursued its claim for depreciation at 15% not by pointing out how its own plant and machinery came into contact with corrosive chemicals but by drawing the attention of the tax authorities to the decision of the Punjab and Haryana High Court and asking the tax authorities to assume the same facts as in the Punjab and Haryana High Court's case. Even before us, learned counsel for the assessee, Sri. S. Parvatha Rao, was at pains to explain that although the details relating to the corro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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