Judgment

SIKRI, J. (For himself and Subba Rao J.) This is an appeal by the Commissioner of Income Tax, Madras, against the judgment of the High Court, dated november 16, 1959, on a certificate granted by the High Court under S. 66A (2) of the Indian Income Tax Act, 1922.

2. The respondent, Mir Mohd. Ali hereinafter referred to as the assessee, is a bus owner and transport operator at Vellore, North Arcot District. He had a fleet of buses, and during the year of account ending with March 31, 1950 (relevant to assessment year (1950-51) he replaced the petrol engines in two of his buses (MDJ 583 and MDJ 723) by new Diesel engines, incurring an expenditure of Rs. 18,544/- in this connection. Before the Income Tax Officer, apart from claiming normal depreciation under the first Paragraph of cl. (vi) of S. 10(2), he also claimed depreciation under the second paragraph of cls. (vi) and cl. (via) of the Indian Income-tax Act, 1922. The Income Tax Officer only allowed 25 per cent depreciation under the first paragraph of cl. (vi). The assessee appealed unsuccessfully to the Appellate Assistant Commissioner on this point. There were other points involved in the appeal but as we are not concern