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Judgment
Leave granted.
The important question which arose before the High Court in the assessee's appeal u/s 260A of the Income Tax Act, 1961, was whether the Tribunal was right in holding that depreciation of plant and machinery was not allowable on the ground that the assessee had not manufactured the goods during the previous year. It appears that the operation of the assessee's business stood suspended during the previous year. Assessee claims that despite such suspension of operation assessee was still entitled to claim depreciation on the ground of passive user. This aspect has not been gone into by the High Court on dismissing the asssessee's appeal u/s 260A. In fact no reason whatsoever has been recorded by the High Court on this point.
In the circumstances, we set aside the impugned judgment and remit the matter to the High Court for fresh decision in accordance with law. We request the High Court, if possible, to dispose of the matter, as early as possible, within six months.
The appeals are disposed of with no order as to costs.