2002 (12) TMI 46 - HC - Income Tax

1. Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in law in holding that the assessee is entitled to relief Under section 80HHC relying upon the Board s Circular No. 729 dated November 1 1995 which was not applicable for the assessment year under consideration i.e. 1987-88? - 2. Whether having regard to the fact that depreciation on fork lifts has been granted at a higher rate applicable to road transport vehicles the Appellate Tribunal was right in law in holding that fork lifts are also entitled to investment allowance? - the first question of law referred to us is answered in the negative against the assessee and in favour of the Revenue. - the second question of law referred to us is answered in favour of the assessee and against the Revenue

Summary

The High Court of Madras considered two questions of law in a case related to the assessment year 1987-88. The first question was answered against the assessee in favor of the Revenue based on previous court decisions. The second question was answered in favor of the assessee as the Tribunal found the machinery eligible for investment allowance, but no finding was made on higher depreciation for fork lifts.