1. This appeal by the Assessee, Stitchwell Qualitex (RF), under Section 260-A of the Income Tax Act, 1961 (Act) is directed against the impugned order dated 26th April 2002 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 6209/Del/96 for the Assessment Year (AY) 1990-91.

2. The following question of law has been framed by the Court by its order dated 3rd April 2003:

“Whether the Tribunal was correct in law in holding that the Assessee-firm was not entitled to depreciation claimed by it in respect of Unit-II?”

3. The facts to this appeal are that the Assessee is a registered firm carrying on business of manufacturing bag stitching machines in a factory situated at Noida since 1981. In the year 1987 the Assessee applied for and was allotted plot No. A-11, Sector-57, Noida. It constructed a factory building thereon in the accounting year ending 31st March 1989 (AY 1989-90) and the cost of the factory building was Rs. 9,77,775.58. Machinery worth Rs. 1,10,825 was installed in the said factory (styled Unit II) in the previous year 1989-90. The Assessing Officer while framing a