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2002 Supreme(P&H) 481
PUNJAB & HARYANA HIGH COURT
Jawahar Lal Gupta and N.K.Sud JJ.
Commissioner Of Income-tax
Versus
Akal Construction And Engineering Co.
Income Tax Appeal No. 92 of 1999,
Decided On : APRIL 30, 2002
The main legal point established in the judgment is the interpretation and application of the provisions of Section 32(1)(ii) of the Income-tax Act, 1961, regarding the allowance of depreciation on wooden shuttering.
Headnote:
Depreciation - Wooden Shuttering - The court affirmed the Tribunal's decision to allow depreciation on wooden shuttering at the special rate of 100 per cent. under the first proviso to Section 32(1)(ii) of the Income-tax Act, 1961, treating each single item of wooden shuttering material as an independent plant.
Fact of the Case:
The assessee claimed a deduction for depreciation on wooden shuttering, which was disallowed by the Assessing Officer. The Commissioner (Appeals) granted the relief, and the Tribunal affirmed the order.
Finding of the Court:
The court found that the Tribunal's decision to allow the depreciation was in conformity with the provisions of Section 32(1)(ii) of the Income-tax Act, 1961, and that no substantial question of law arose. Consequently, the appeal was dismissed with no costs.
Issues: The main issue was whether the Tribunal was right in allowing depreciation on wooden shuttering at the special rate under Section 32(1)(ii) of the Income-tax Act, 1961.
Ratio Decidendi: The court held that the Tribunal's decision was based on the provisions of Section 32(1)(ii) of the Income-tax Act, 1961, and that it was purely a finding of fact with no substantial question of law arising.
Final Decision: The appeal was dismissed with no costs.
Jawahar Lal Gupta, J.
1. The assessee claimed a deduction of Rs. 2,60,477. The claim was disallowed by the Assessing Officer. The Commissioner (Appeals) granted the relief. The order has been affirmed by the Tribunal. The Revenue challenges this order and maintains that the following substantial question of law arises for decision by this court:
"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in allowing depreciation on wooden shuttering at the special rate, i.e., 100 per cent., under the first proviso to Section 32(1)(ii) of the Income-tax Act, 1961, and thus treating that each single item or constituent part of wooden shuttering material form independent plant, i.e., wooden shuttering, within the meaning of Section 32(1) of the Act ?"
2. It is not disputed that the assessee had purchased various items for being used in the construction work. Individual bills had been filed. The value of each item was below Rs. 5,000. On this basis, the Tribunal has accepted the assessees claim. We find that the action is in conformity with the provisions of Section 32(1)(ii) of the Income-tax Act, 1961, which permits 100 per cent. allowance. The finding recorded by the Tribunal is purely one of fact. No substantial question of law arises.
3. Consequently, the appeal is dismissed. No costs.
