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Judgment
G.S. SING11VI, J:
In this petition filed under s. 256(2) of the IT Act, 1961, the assessee has mad a request that direction be issued to the Tribunal to refer the following questions of law to this Court :
(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount of subsidy of Rs. 7,25,570 was to be adjusted from the cost of machinery and building, etc., while calculating depreciation ?
(ii) Whether the Tribunal has been right in law in holding that for arriving at the actual cost of machinery and building, etc., for the purpose of depreciation the subsidy amount of Rs. 7,25,570 receivable from the Government of Punjab for establishing an industry in a backward area is to be deducted from the cost of such machinery and building, etc. ?
We have heard learned counsel for the parties. In view of the judgment rendered by the Supreme Court in Commissioner of Income Tax, Hyderabad Vs. M/s. P.J. Chemicals Ltd., ) , we are of the opinion that the following questions of law do arise for determination by this Court :
(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount of subsidy of Rs. 7,25,570 was to be adjusted from the cost of machinery and building, etc., while calculating depreciation ?
(ii) Whether, the Tribunal has been right in law in holding that for arriving at the actual cost of machinery and building, etc., for the purpose of depreciation the subsidy amount of Rs. 7,25,570 receivable from the Government of Punjab
for establishing an industry in a backward area is to be deducted from the cost of such machinery and building, etc. ?
The Tribunal is directed to refer the above-mentioned questions to the High Court along with the statement of case.
OPEN