Thiagarajar Mills Ltd. vs Commissioner of Income Tax

R. Jayasimha Babu, J.—The question referred to us at the instance of the assessee, is as to whether the depreciation as per the Income Tax

(Fourth Amendment) Rules, 1985, is to be allowed in all cases which are pending on April 2, 1983, irrespective of the assessment year involved or

is to be allowed only in 1984-85 and subsequent assessment years ?

During the assessment year 1981-82 with which we are concerned, the Income Tax (Fourth Amendment) Rules, 1983, was not in force. That

rule came into force on April 2, 1983, and no retrospective effect has been given to that rule. It is, therefore, obvious that for the assessment year

in question, namely, 1981-82, the amendment rules which came into effect from April 2, 1983, could have no application. Our answer to the

question that has been referred to us is, therefore, that for the assessment year prior to the date of the commencement of the Amendment Rules,

1983, the rule has no application. The Revenue shall be entitled to costs in the sum of Rs. 750 (rupees seven hundred and fifty only).