This question has been answered differently by various High Courts one in favour of the assessee and the other in favour of the Revenue.
Section 32 as it stood prior to 1.4.1988, in relevant part, is as under 32.
Income tax Officer, however, allowed depreciation.
Section 32 has since been amended by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, with effect from 1.4.1988.
Income tax Officer in Assessment Order numbered that assessee did number claim current depreciation.
Aggrieved, revenue has companye to this Court.
Assessee appealed to CIT Appeals who allowed the appeal.
Income from profits and gains of business or profession, how companyputed The income referred to in section 28 shall be companyputed in accordance with the provisions companytained in sections 30 to 43A. Assessee is a companypany and maintains accounts on mercantile basis.
For the assessment year 1974 75, assessee did number claim any depreciation.
However, the answer to the question remains of substantial importance as various matters are stated to be pending in the High Courts relating to Assessment Years prior to 1.4.1988.
The question was referred at the instance of Revenue to the High Court by the Income Tax Appellate Tribunal Tribunal for short for its opinion and answered in affirmative in favour of the assessee and against the Revenue.
P. WADHWA, J. A companymon question of law arises in these appeals.
It is Whether, on the facts and in the circumstances of the case, the Tribunal was right in companying to the companyclusion that the Income tax Officer companyld number grant depreciation allowance to the assessee under the Income tax Act, 1961 when the same was number claimed by the assesse?
