Law: Income Tax Act, 1922

Section: 10,10(2)(vi),66(1)

Law: Income Tax Rules, 1922

Section: 9(1)(2)

Income-tax Act (XI of 1922)-­--Ss. 10(2) (vi) & 66(1) - Income-tax Rules, 1922, r. 9 (1) (2)­ Additional depreciation, claim of-Appendix is a part of statement by virtue of r. 9(2), Income-tax Rules, 1922-Scheme of r. 9, Income-tax Rules, 1922 discussed-Assesses claiming additional depreciation in respect of second hand ships acquired and used in relevant assessment year--Claim rejected by Department but allowed by Tribunal-Held: Depreciation on ships was allowed under S. 10(2) (vi). Income-tax Rules, 1922 in manner prescribed by r. 9(1) & (2). JUDGMENT SALEEM AKHTAR, J.--On Department's application under section 66(1) of the Income-tax Act the learned Tribunal., has referred the following question :- . "Whether in the facts and circumstances of the case the Income-tax Tribunal was justified in law in holding that the assessee was entitled to additional depreciation in respect of the 'second hand ship acquired and used?" The respondent is a public limited Company which is engaged in shipping business as carriers. For the assessment year 1962.63 that respondent claimed Rs. 5,03,305 as additional depreciation in respect of second hand ships which were acquired and used in the relevant assessment year, but this claim was disallowed by the Income-tax Officer. This order of the Income-tax Officer was confirmed in appeal by the Appellate Assistant Commissioner. The respondent challenged in appeal before the Tribunal, which was allowed. The learned counsel for the Department has contended that the provisions of rules 9(1) and 9(2) will not apply to the respondent's case. Mr. Ali Athar has invited our attention to section 10(2) (vi) under which depreciation is allowed. According to learned counsel there is no dispute about the normal depreciation, but the question is whether additional depreciation can be allowed to the respondent under section 10(2) (vi) read with rule 9, sub-rule (2). The learned counsel has contended that as Appendix is a part of the statement, by virtue of rule 9(2) it will apply to the present case. It was further contended that additional, depreciation can he calculated with reference to the corresponding entries in the statement provided…

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