Law: Income Tax Act, 1961

Section: 256(2)

(a) Income-tax----Reference---Depreciation---Tribunal finding that tubewell is "plant" as it supplied water to factory and formed part of manufacturing process--¬Finding of fact---No referable question arises---Indian Income Tax Act, 1961, S.256(2). (b) Income-tax---Reference---Precedent---Tribunal justified in declining to refer issue covered by an earlier of jurisdictional High Court---Indian Income Tax Act, 1961, S.256(2). (c) Income-tax----Reference---Issue not arising out of order of Tribunal---Not referable--¬Indian Income Tax Act, 1961, S.256(2). Where the Tribunal noted that the amendment to the Income Tax Rules, 1962, prescribing 5 percent depreciation for tubewells brought about with effect from April 2, 1983, would not cover the year under consideration, namely, the assessment year 1978-79, and that the tubewell supplied water to the factory and formed part of the plant for manufacturing process and was eligible for depreciation at 10 percent. Held, that the reference was rightly declined by the Tribunal Held also, (i) that in respect of sea freight and marine insurance, the Tribunal rightly declined reference as it followed the earlier of the jurisdictional High Court in CIT v. Roadmaster Industries of India (Pvt.) Ltd. (1993) 102 ITR 968 (P & H). CIT v. Roadmaster Industries of India (Pvt.) Ltd. (1993) 202 ITR 968 (P & H) fol. (ii) that as the parties conceded that the issue of weighted deduction on bank interest and forwarding charges to the bank did not arise out of the order of the Tribunal no referable question of law arose. JUDGMENT This petition has been filed under section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), for directing the Income-tax Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal"), to refer the following questions of law along with the statement of the case for the opinion of this Court: (1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the tubewell of the assessee forms a part of its plant entitling it for depreciation at 10 per cent, against the specific rate provided under…

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