Madhya Pradesh High Court
Steel Ingots (Pvt.) Ltd. vs Commissioner Of Income-Tax on 9 March, 1989
Equivalent citations: [1990]181ITR186(MP)
JUDGMENT
G.G. Sohani, Actg. C.J.
1. This is an application under Section 256(2) of the Income-tax Act. 1961.
2. The material facts giving rise to this application, briefly, are as follows :
3. Aggrieved by the order of assessment for the assessment year 1977-78, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) but that appeal was dismissed. The assessee, therefore, preferred second appeal before the Tribunal and contended that the Income-tax Officer erred in deducting the amount of capital subsidy from the cost of fixed assets for allowing depreciation. The Tribunal did not allow the assessee to raise that contention and dismissed the appeal. Aggrieved by the order passed by the Tribunal, the assessee sought reference but as the application submitted by the assessee. in that behalf was rejected, the assessee has preferred this application.
4. Having heard learned counsel for the parties, we have come to the conclusion that the following question of law does arise out of the order passed by the Tribunal:
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in not entertaining the ground of appeal regarding the deductibility of capital subsidy in arriving at the actual cost of the assets for the purpose of calculating depreciation ?"
5. The application is, therefore, allowed. The Tribunal is directed to state the case and to refer the aforesaid question of law to this court for its opinion. In the circumstances of the case, parties shall bear their own costs of this application.