1990 PLP 1112 (PTD)
GWALIOR SUGAR CO. (P.) LTD. Versus COMMISSIONER OF INCOME‑TAX
| Citation | 1990 PLP 1112 (PTD) |
| Forum / Court | Madhya Pradesh High Court (India) |
| Bench Members | N.D. Ojha C.J. and R. C. Shrivastava, J |
| Parties | GWALIOR SUGAR CO. (P.) LTD. Versus COMMISSIONER OF INCOME‑TAX |
Q1: What are the key laws and sections cited in 1990 PLP 1112 (PTD)?
This judgment primarily cites: statutory provisions as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1990 PLP 1112 (PTD)?
The case was heard and decided by the Madhya Pradesh High Court (India) bench comprising: N.D. Ojha C.J. and R. C. Shrivastava, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1990 PLP 1112 (PTD) (GWALIOR SUGAR CO. (P.) LTD. Versus COMMISSIONER OF INCOME‑TAX). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Headnotes / Summary
Income‑tax‑‑‑ ‑‑‑‑Depreciation‑‑‑Higher rate of depreciation‑‑‑Machinery coming into contact with corrosive chemicals‑‑‑Machinery used in manufacture of sugar coming into contact with molasses‑‑‑Iron, lead and copper present in molasses‑‑‑Iron, lead and copper are not corrosive chemicals‑‑‑Machinery used in manufacture of sugar is not entitled to depreciation at a higher rate. Though machinery used in the manufacture of sugar comes into contact with molasses which contains iron, lead and copper, iron, lead and copper are not corrosive chemicals and hence the machinery used in the manufacture of sugar is not entitled to a higher rate of depreciation. C.I.T. v. Saraswati Industrial Syndicate Ltd: (1982) 136 ITR 758 (P & H) fol. N.P. Mittal for the Assessee. R.C. Lahoti for the Commissioner.
Judgment & Decree
N.D. OJHA, C. J.‑‑The Tribunal, Delhi Bench "A", New Delhi, has referred the following question to this Court for its opinion under section 256(1) of the Income‑tax Act, 1961 ("the Act"): "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the assessee's claim of depreciation at the rate of 15 percent. on the machinery in question?" The assessee, Gwalior Sugar Co. Ltd., Dabra, claimed depreciation at the higher rate of 15 percent. on machinery on the ground that in the process of preparation of sugar, it came into contact with corrosive chemicals. This claim has been repelled by the Tribunal, but, on an application made in this behalf the assessee, the Tribunal has referred the aforesaid question to this Court for its opinion. In repelling the claim made by the assessee, the Tribunal placed reliance on a decision of the Punjab and Haryana High Court in C.I.T. v. Saraswati Industrial Syndicate Ltd. (1982) 136 ITR
758. It has been held in the case of Saraswati Industrial Syndicate Ltd. that the machinery did not come into contact With corrosive chemicals as contemplated by the relevant entry in the Act for showing depreciation at the rate of 15 percent. It has been urged by learned covaso4 for the assessee that the Tribunal has not taken into consideration the circumstance that iron, lead and copper persist in the composition of molasses. Reliance has been placed in support of the submission on a book titled `Cane Sugar Handbook' authored by Meade Chem. In our opinion, even if it is accepted for the sake of argument that iron, lead and copper persist in the composition of molasses, it cannot be said that the machinery comes into contact with corrosive chemicals for the simple reason that it is not possible to take the view that iron, lead and copper constitute corrosive chemicals. In this view of the matter, we agree with the view taken in Saraswati Industrial Syndicate Ltd, s case (1982) 136 ITR 758 (P & H), and our answer to the question referred to us is that, on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the assessee's claim of depreciation at the rate of 15 percent. on the machinery in question. There shall be no order as to costs. M.BA./740/T Reference answered.