TMI Blog1967 (3) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... d Case No. 16 of 1960. For the assessment year 1955-56 the appellant, a firm carrying on the business of exporting frozen prawns, made a claim for initial and additional depreciation under sections 10(2)(vi) and 10(2)(via) of the Income-tax Act, 1922, in respect of a one-ton Flake Ice Machine and two reconditioned " Jackstone Junior Frosters Mark II ", each of the latter purchased at pound 1,338-15-0 from Messrs. Jackstone Frosters Ltd., London, and imported into India and used for its business. In regard to the Flake Ice Machine the Income-tax Officer allowed the depreciation. In regard to the reconditioned " Jackstone Junior Frosters Mark II ", the suppliers, viz., Messrs. Jackstone Frosters Ltd. of England wrote to the appellant on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of worn parts and the incorporation of the up-to-date modifications, they were virtually as new when supplied to the Cochin Company. It was only because in our opinion the machines were in new condition that they were sold by us with our 12 months' guarantee as in the case of new machines." The Income-tax Officer held, on the basis of these letters, that the two Frosters were not " new " and that initial and additional depreciation was not allowable under section 10(2)(vi) and 10(2)(via) of the Income-tax Act. The appellant preferred an appeal to the Appellate Assistant Commissioner of Income-tax, who, by his order dated December 31, 1958, confirmed the decision of the Income-tax Officer. The appellant took the matter in second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r class of cases be prescribed ; . . . . . (via) in respect of depreciation of buildings newly erected, or of machinery or plant being new which has been installed, after the 31st day of March, 1948, a further sum (which shall be deductible in determining the written down value) equal to the amount admissible under clause (vi) (exclusive of the extra allowance for double or multiple shift working of the machinery or plant and the initial depreciation allowance admissible under that clause for the first year of erection of the building or the installation of the machinery or plant) in not more than five successive assessments for the financial years next following the previous year in which such buildings are erected and such machinery an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the two " Jackstone Junior Frosters Mark II " in this case was reconstruction or substitution of the entire machinery, meaning by entirety not necessarily the whole but substantially the whole subject-matter of the machinery. The question of law arising in this case must be tested in the background of this principle, but having heard learned counsels for the parties, we are not satisfied that the statements in the case are sufficient to enable us to decide the question of law raised therein. In its order dated July 1, 1959, the Appellate Tribunal has, for instance, stated that " what had really happened was that machines of an anterior date are stripped and rebuilt incorporating the latest available technical improvements ". It is not menti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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