TMI Blog2005 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee's case in the assessment year in 1981-82, because the accounting period relevant to the assessment year in question had already ended on June 30, 1980? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in confirming the order of the Commissioner of Income-tax (Appeals), who has confirmed allowance of depreciation on transport vehicles at 30 per cent.?" The present reference relates to the assessment year 1981-82. Briefly stated the facts giving rise to the present reference are as follows: The applicant-assessee is a limited company and it runs transport vehicles on hire. The accounting period relevant to the assessment year in question had ended on June 30, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f that decision it was urged that the rate of depreciation, which stands amended with effect from July 24, 1980, would be applicable for the year under consideration. On the other hand, it was contended on behalf of the Revenue that the accounting period of the applicant-assessee had ended on June 30, 1980, i.e., before the rules were amended. It was also submitted that during the assessment year in question the income of the accounting period is brought to tax and as such the benefit of the said amendment is not available to the applicant-assessee. The Tribunal found favour with the contention advanced on behalf of the Revenue. The Tribunal also observed that similar issue had arisen in the case of Motor Sales Ltd. [I.T. Appeal No. 2361 (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant was of twelve months which ended on June 30, 1980. Even though the assessment year was 1981-82, during the accounting period the rate of depreciation admissible on transport vehicles let out on hire was 30 per cent. and only vide notification dated July 24, 1980, the rate of depreciation was increased from 30 per cent. to 40 per cent. which fell outside the accounting period and, therefore, the rate of depreciation at higher rate was admissible to the applicant only in respect of the assessment year 1982-83 and not during the assessment year 1981-82. He referred to section 4 of the Act which is a charging section. According to him, the total income of the previous year is subjected to income-tax under section 4 of the Act at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the apex court in the case of Karimtharuvi Tea Estate Ltd. v. State of Kerala [1966] 60 ITR 262, wherein the apex court has held that it is well-settled that the Income-tax Act as it stands amended on the first day of April of any financial year must apply to the assessment of that year. Any amendments in the Act which come into force after the first day of April of a financial year, would not apply to the assessment for that year, even if the assessment is actually made after the amendments came into force. Similar view has been taken by the Madras High Court in the case of Om Sindhoori Capital Investments Ltd. v. Joint CIT [2005] 274 ITR 427. In view of the charging section 4 of the Act the income of the previous year is brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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