Law:

Section:

Section 33 of the Income-tax Act, 1961 - Development rebate - Allowance/rate of - Whether assessee-co-operative would be entitled to development rebate on road constructed for approach to its unit - Held, no Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of - Whether assessee was entitled to depreciation on approach road to its unit as building -Held, on facts, yes Facts The assessee, a co-operative milk producers' union, claimed development rebate as well as depreciation allowance in respect of expenditure incurred by it for laying approach roads to one of its units on the premise that it was a 'plant' within the meaning of section 43(3). The AAO allowed the assessee's claim. On appeal, the Tribunal upheld the AAO's order as in its view the approach roads to the said unit fell within the meaning of 'plant' under sections 32 and 33. On reference: Held In the light of the decision in CIT v. Elecon Engg. Co. Ltd. [1974] 96 ITR 672 (Guj.) in the present case, in view of the bare fact that the roads were constructed for approach to the unit and nothing more, it was difficult to support the Tribunal's finding that the roads formed part of the plant of the assessee. Hence, the assessee was not entitled to development rebate thereon. However, the assessee was entitled to depreciation on the approach roads as building. Section 32(1)(iii) of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of - Assessee co-operative made physical verification of its stock for first time in 18 years in relevant previous year and found that certain articles noted in stock register were non-existent or were missing - Whether assessee was entitled to deduction for those articles under section 32(1)(iii) - Held, on facts, no FACTS The assessee, a co-operative milk producers' union, made physical verification of its stock for the first time in 18 years immediately preceding a resolution dated 24-9-1965. The said resolution showed that certain glass vessels, etc, were non-existent or were found missing during the inventory. For the assessment year 1966-67, the assessee claimed a deduction in respect of non-existing stock under section 32(1)(iii) and the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492