( 1 ) AT the instance of the Revenue the following question is referred : "whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal was correct in holding that the provisions of Income-tax (Fourth Amendment) Rules, 1983 coming into effect from 2-4-1983 were applicable for the assessment year 1983-84?"at the instance of the assessee, the following question is referred : "whether on facts and in the circumstances of the case, depreciation as per Income Tax (Fourth Amendment) Rules, 1983, is to be allowed in all assessments which were pending on 2-4-1983, irrespective of the assessment year involved?"

( 2 ) THE facts in brief are as follows:-The assessee is a public limited Company which manufactures and sells cement. The assessment years are 1982-83 and 1983-84 for which the previous years ended by 31-3-1982 and 31-3-1983 respectively. For the assessment year 1982-83 the assessee-Company filed its income-tax return on 9-9-1982 in which, it claimed a depreciation of Rs. 1,29,495-90 ps. On 15-5-1984 it filed a revised return claiming depreciation in accordance with the income-tax (Fourth Amendment) Rules, 1983 which came into force on 2-4-1983. The difference of depreciation claimed was arrived at Rs. 59,55,898. 00. Similarly, for the assessment year 1983-84 the assessee claimed depreciation in accordance with the provisions of the Income-tax (Fourth Amendment) Rules, 1983. For the assessment years 1982-83 and 1983-84 the Income-tax Officer granted depreciation at the old rates. On appeal, the Commissioner of Income-Tax (Appeals) agreed with the Income-tax Officer. On a further appeal to the Tribunal, the Tribunal held that the assessee is entided to claim depreciation at the higher rates under the Income-tax (Fourth Amendment) Rules, 1983 for the assessment year 1983-84. The Tribunal also, at the instance of the Revenue as well as the assessee, referred the questions of law which were stated in the earlier paragraphs.

( 3 ) THE question, therefore, is whether the Tribunal is right in holding that the assessee is entitled for the depreciation at higher rates for the assessment year 1983-84, as per the Income-tax (Fourth Amendment) Rules, 1983.

( 4 ) THE Income-tax (Fourth Amendment) Rules, 1983 came into force on 2/04/1983. The relevant rule reads as follows: "1 (1) These rules may be called the Income-tax (Fourth Amendment) Rules (2) They shall come into force on the 2nd day of April, 1983. 2. In the Income-tax Rules, 1962, in part I of appendix I, in the "table of rates at which depreciation is admissible" (1) under the heading "i Buildings" for items 1, 2 and 3 and the entries relating thereto in Columns 1,2 and 3, the following items and entries shall be substituted, namely:"the main argument of the learned Counsel for the assessee is, since the rules are substituted, they are deemed to have come into force with effect from 1-4-1983 though the Fourth Amendment Rules were brought into force on 2-4-1983, therefore, the Tribunal is right in holding that the assessee is entitled for higher rate of depreciation for the assessment year 1983-84.

( 5 ) THE contention of the learned Counsel for the assessee cannot be accepted as it is well-settled principle of law, as held by the Supreme Court in Karimtharuvi Tea Estate Limited v. Slate of Kerala, 60 I. T. R. 262, that: "it is well-settled that the Income-tax Act as it stands amended on the first day of April on any financial year must apply to the assessment of that year. Any amendments in the Act which come into force after the first day of April of a financial year, would not apply to the assessment for that year, even if the assessment is actually made after the amendments come into force. "therefore, whatever is the rate of tax as on 1st April of the financial year 1983-84 is applicable to the assessment year of 1983-84 though the assessment is made subsequent to the amendment. Since the higher rates of depreciation have been brought into force o

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