9911796707
TMI Blog2006 (11) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961, against the order dated August 6, 2003, passed by the Income-tax Appellate Tribunal, Gauhati Bench, Guwahati, relating to the income of the respondent-assessee for the assessment years 1988-89 to 1991-92. These batch of appeals are taken up together for disposal by this common judgment as the same substantial question of law is involved in all the cases. 2. The facts essential for disposal of these appeals are, in brief, that the respondent is a company carrying on the business of growing and manufacturing of tea and a regular taxpayer. The respondent filed returns for every assessment year mentioned above but the Income-tax Officer refused to accept the taxable income shown by the assessee. The Income-tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act read with rule 8(1) of the Income-tax Rules, 1962, the Tribunal was correct in law in holding that for the purpose of computing the written down value of depreciable assets used in tea business only 40 per cent. instead of 100 per cent. of depreciation allowable at the prescribed rate should have to be deducted in the assessee's case ?" 3. Heard Mr. U. Bhuyan, learned standing counsel, Income-tax Department, appearing for the appellant and also heard Mr. A. K. Saraf, learned counsel appearing for the respondent. 4. Learned counsel appearing for the appellant submits that the Income-tax Appellate Tribunal has committed an error in holding that only 40 percent. of the depreciation has to be deducted while determining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le and thus 40 per cent. is only actually allowed towards depreciation of the depreciable assets. As regards the words "actually allowed", the learned counsel relied on the decisions of the apex court in CIT v. Nandlal Bhandari Mills Ltd. [1966] 60 ITR 173, CIT v. Straw Products Ltd. [1966] 60 ITR 156 (SC) and Madeva Upendra Sinai v. Union of India [1975] 98 ITR 209 (SC). In Nandlal Bhandari Mills Ltd.'s case [1966] 60 ITR 173, the apex court held that the portion of the depreciation which entered into the computation of income taxable under the Indian Income-tax Act, 1922, was depreciation which had been actually allowed. When 40 per cent. of the total income is taxable income, the depreciation actually allowed is only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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