Law: Income Tax Act, 1922

Section: 10(2)(vi)

Income-tax Act (XI of 1922)---S. 10 (2) (vi)--Depreciation--Assessee, a foreign shipping company carrying on shipping business all over the world--Assessee, held, was entitled to initial and additional depreciation on the ships which were not installed in Pakistan.Commissioner Income-tax Karachi v. Messrs Shenniehen Steamship Co. Ltd. P L D 1985 S C 118 and Commissioner of Income-tax v. Union of Burma Five Stars Line Corporation I.T.C. No. 120 of 1971 fol.JUDGMENT SALEEM AKHTAR, J.--The respondent is a foreign slipping company which carries on shipping business all over the world. In respect of assessment year 1960-61, it had claimed initial and additional depreciation. This was not allowed on the ground that the respondent's ships were not installed in Pakistan. In appeal the Income Tax Appellate Tribunal allowed the claim of the respondent. The applicant filed an application under section 66 (1) of the Income Tax Act for referring the following question to this Court: "Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was…