COMMISSIONER OF Income Tax vs VIKRAM METAL POWDER PVT. LTD.

V. S. KOKJE J. - This is an application u/s 256(2) of the Income Tax Act, 1961 (for short "the Act") by the Commissioner of Income Tax, Bhopal, praying for a direction to the Income Tax Appellate Tribunal, Indore Bench, to frame the following question and refer it to this court for its opinion :

"Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was legally correct in directing the Income Tax Officer to apply the decision of the Madhya Pradesh High Court in the case of COMMISSIONER OF Income Tax Vs. BHANDARI CAPACITORS PRIVATE LTD., by which the Hon ble High Court had held that the amount of capital subsidy is not deductible from the actual cost of the assets for the purpose of allowing depreciation ?"

An application u/s 256(1) of the Income Tax Act was moved before the Tribunal which rejected it following the decision of this court in COMMISSIONER OF Income Tax Vs. BHANDARI CAPACITORS PRIVATE LTD., . A division Bench of this court in Commissioner of Wealth-tax Vs. Smt. Usha Devi (Lrs. of H.H. Maharaja Yeshwant Rao Holkar), has held that where the Tribunal has passed an order following the decision of the High court in another case, the court would be justified in rejecting an application u/s 256(2) and pendency of the point before the Supreme Court is no ground for allowing the application. In view of the aforesaid decision, no referable question survives before us. The application is, therefore rejected with no order as to costs.