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Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of -Assessment year 1983-84 - Assessee filed its return and claimed depreciation on compressor at rate of 30 per cent being used for mines and quarries - ITO allowed 10 per cent depreciation holding that under Income-tax Rules, 1962 no such rate had been prescribed in respect of this item of machinery - Assessee laid stress on Appendix-1 appended to Rules and by relying upon Entry No. 8 of Item III (ii), contended that if compressor is used for mining and quarries, depreciation would be allowed to extent of 30 per cent - Revenue, however, contended that depreciation at said rate could be allowed only if it had been claimed by assessee under that head and assessment order did not reveal that assessee had claimed depreciation under that particular entry - Whether in view of above facts, matter was to be remanded to ITO for determining issue afresh - Held, yes Anuroop Singhi for the Petitioner. A. Kasliwal for the Respondent. ORDER 1. This reference has been made under section 256(1) of the Income-tax Act, 1961 at the instance of the revenue for opinion of this Court, arising out of the order of Tribunal in ITA No. 771/JP/86, dated 27-10-1987 for the assessment year 1983-84 on the following question of law :- "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to depreciation on the compressor at the rate of 30 per cent." 2. The assessee filed his return and claimed depreciation of the compressor at the rate of 30 per cent being used in mine and quarries. The Income-tax Officer allowed 10 per cent depreciation holding that under the Income-tax Rules, no such rate has been prescribed in respect of this item of machinery. Appeal was preferred before the Commissioner, Income-tax (Appeals) confirmed the view of the Income-tax Officer. Further appeal was preferred before the Income-tax Appellate Tribunal. The Tribunal, relying upon the…

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