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TMI Blog1984 (2) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order on 5th July, 1980 for the asst. yr. 1977-78 accepting the claim of the assessee that depreciation on furnaces was allowable at 15 per cent on the ground that they came into contact with corrosive substances. The Commissioner felt that the order was erroneous in so far as it was prejudicial to revenue and issued a show-cause notice under s. 263 of the IT Act 1961. Before him the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jab and Haryana in CIT Patiala II vs. Saraswati Industrial Syndicate Ltd. (1981) 23 CTR (P H) 6 : (1982) 136 ITR 758 (P H). He also rejected the contention that the matter had become final in 1969-70 itself by stating that the Depreciation Schedule had been changed w.e.f. 1st April, 1970 where the method of allowing depreciation industry wise had been substituted by varying rates of depreciation f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imes even the furnaces have been eaten away by the chemicals. He accordingly urged that the furnaces did come into contact with corrosive chemicals. (a) As regards the applicability of the decision of the Punjab and Haryana High Court he submitted that the facts in that case were distinguishable. There lime and acid were added to sugercane juice before filteration. The filtered juice, which did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 degrees. In that high temperature the ores are reduced by the action of limestones mixed with them. The ores contain impurities like sulphur and phosphorus which are converted into sulphurdioxide, etc. It is well known that lime and sulphurous and phosphorus gases are corrosive. The furnaces come into contract with such corrosive chemicals. The assessee is, therefore, clearly entitled to deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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