JUDGMENT - Kotval, C.J.

1. Two items claimed by the assessee have been allowed to them and in regard to them two question have been framed. The first item is of Rs. 53,634, which the assessee claimed for depreciation on their assets for the assessment 1956-57. The other is an item of Rs. 6,600, in respect of which the assessee claimed exemption under section 15B of the Income-tax Act. We will separately state the facts relating to each item as we deal with it.

2. Regarding the sum of Rs. 53,634, on account of depreciation, the facts in brief are that the Cement Marketing Co. of India Ltd., which is a subsidiary of the assessee, the Associated Cement Co. Ltd., was at one time appointed a common sales manager for the assessee and several other companies, namely, the Patiala Cement Co. Ltd., and the Dalmia group of cement companies. This was by an agreement dated 4th June, 1942. In 1948, however, the Dalmia group dropped out of the arrangement and since then the Cement Marketing Company was only attending to the sales on behalf of the assessee and its subsidiary, the Patiala Cement Co. Ltd., On 21st April, 1954, the agreement with the Cement Marketing Company was renewed for a period

Click Here to Read the rest of this document