Commissioner of Income Tax vs Polychem Ltd.

Sugla, J.—This reference at the instance of the Department raises the following question :

"Whether, on the facts and in the circumstances of the case, the capital expenditure incurred by the assessee-company of Rs. 6,00,000 and of Rs. 24,54,303 in terms of the ''Polysterene Plant Contract'' of January 18, 1956, read with the agreement of September 20, 1955, and Dow Styrene Process Plant agreement of August 15, 1960, respectively, resulted in its acquiring a ''plant'' as defined in section 43(3) of the Income Tax Act, 1961, on which depreciation is properly allowable u/s 32(1)(ii) of the said Act for each of the assessment years 1967-68 to 1970-71 both inclusive ?"

Counsel are agreed that the issue involved herein is squarely covered by the Supreme Court decision in the case of Scientific Engineering House (P) Ltd. Vs. Commissioner of Income Tax, Andhra Pradesh, , and that the question has to be answered in the affirmative and in favour of the assessee.

The question is, accordingly, answered. No order as to costs.