G.C. Bharuka, J.

1. The assessee, which is a private limited company, was carrying on hotel business during the assessment years in question namely, 1982-83, 1983-84 and 1984-85. During the first two assessment years, the assessee had claimed depreciation on the banquet hall of the hotel building at the rate of 10 per cent for the asst. yr. 1982-83 and for the succeeding two years 1983-84 and 1984-85 at the rate of 15 per cent. The said claim was allowed by the ITO in the assessment made under s. 143(3) of the IT Act, 1961 (in short 'the Act'). The said orders were passed on 24th January, 1985.

2. The assessee went in appeal before the CIT(A) against the said assessment orders on certain issues which was ultimately disposed of on 27th March, 1986. Subsequently, on 17th February, 1987, the CIT invoked his suo motu revisional jurisdiction under s. 263 of the Act against the said assessment orders on the ground that those were prejudicial to the interest of the Revenue in as much as the assessee was entitled to the depreciation on the building only at the rate of 2.5 per cent.

The above order of the CIT was subjected to appeal before the Tribunal which set aside the same by hol