Law: Income Tax Act, 1922

Section: 10,10(2)(vi)(3)

Income tax Act (XI of 1922)---S. 10(2)(vi) (3) Income tax Appellate Tribunal while disallowing half of claim for expenses of car which was not questioned by respondent, holding that car being asset of assesses and irrespective of fact whether car is used for personal purpose of directors or not, statutory depreciation was admissible on car will have to be allowed Held, Income tax Act, 1922 being cleat) and unambiguous two interpretations of S. 10 were not possible Order of Tribunal, therefore, was in complete disregard of S. 10. JUDGMENT NAIMUDDIN, J. These two applications under section 66(1) of the Income tax Act, 1922 (hereinafter called the Act) have been filed by the Commissioner of Income tax, Karachi East, Karachi for answering the following question of law arising out of the order, dated 4 10 1971 passed by the Income tax Appellate Tribunal: "Whether on facts and. circumstances of the case the Tribunal was justified in directing the Income tax Officer to allow the full depreciation irrespective of the fact whether the car was not wholly used for the purpose of the business contrary to section 10(3) of the Income tax Act, 1922." 2. The facts giving rise to these applications are that in the assessment year 1969 70, the respondent's half claim for the car expenses amounting to Rs. 1,812 and half claim for depreciation on the car amounting to Rs. 1,730 was disallowed by the Income tax Officer as being of personal and non-trading nature by the order dated 30 6 1971. Similarly for the assessment year 1970 71, the respondent's half claim for the car expenses amounting to Rs. 5,082 and half claim for depreciation on the car amounting to Rs. 2,734 was disallowed by the Income tax Officer as being of personal and non-trading nature by the order of the same date. 3. On appeals, the Income tax Appellate Tribunal, by a common order, dated 4 10 1971, upheld the orders of the Income tax Officer to the extent of disallowing half claim in respect of car expenses but allowed half claim on account of depreciation on the car for both the assessment years on the ground that the car was the asset of the respondent and the respondent was entitled to the statutory…

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