Law: Income Tax Act, 1922

Section: 10(2)(vi)

Law: Income Tax Rules, 1922

Section: 9(2)

(a) Income-tax Act (XI of 1922)--S. 10(2) (vi) read with income tax Rules, 1922, r. 9(2)- depreciation -Rule 9(2) including additional depreciation for all newly­ acquired plants and machinery including ocean-going vessel for a period of 5 years (1-4-1948--?0-6-65)- Rules framed by National Board of Revenue not ultra vires Act. (b) Income-tax Act (XI of 1922)--.- - S. 10(2)(vi) [as amended, by Finance Ordinance, 19671 read with Income-tax Rules, 192.2, r. 9(2)-Additional depreciation for all newly­ acquired plants and machinery including ships installed after 1-4-1948 and before 1-7-1965---Whether ship installed in Pakistan and plying in Pakistan waters not material for purpose of additional depreciation­ Ship installed after date (1-7-1965) not entitled to additional depre­ciation. (c) Income-tax Act (XI of 1922)­ - 10(2)(vi)-Normal depreciation-Initial depreciation-Distinction-Normal depreciation available to both residents and non-residents on basis of user---Initial depreciation allows further sum of deprecia­tion or rates having been prescribed in Statute. JUDGMENT BADWL HAIDER CHOWDHURY, J-These are two certificates appeals under section 66(a) (2) of the Income-tax Act. The assesses-appellant is a Company incorporated outside Bangladesh but carries on business in Bangladesh through local Agents. It is a Shipping Company and it plies ships from and to ports in Bangladesh. During the assessment year 1968-69 the Assessee Company claimed depreciation on the value of the three ships, namely, 'Hugh Everett', 'Murray Everett' and 'Monolo Everett. The Company calmed additional depreciation apart from the normal depreciation for the third year out of the five years entitlement. The Income-tax Officer refused such additional depreciation. Thereafter, the Appellate Assistant Commissioner while disposing of the appeal observed: "The Income-tax Officer was not legally justified to disallow the claim of additional depreciation. The benefit of additional depreciation for the three ships mentioned above will also be given to the appellant in computing the income of the appellant in the year under appeal. The Income-tax Officer is, therefore, directed to allow additional…

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