TMI Blog1980 (10) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... justified ? " The assessment years under consideration are six years, 1963-64 to 1968-69. The assessee before us is a private limited company and the assessee acquired certain machineries under what was called hire purchase agreement from the National Small Scale Industries Corporation. In the original assessment orders, depreciation and development rebate had been allowed on these assets acquired under the hire purchase agreement. Thereafter, proceedings were started for rectification under s. 154 proposing to withdraw the depreciation and development rebate allowed to the assessee in these six years, and the ground was that since the assesseecompany was not the owner of the assets in question, depreciation and development rebate could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not pass to the assessee. Consequently, the revenue contended that the assessee was not the owner of the plant and machinery during the relevant previous years and was not entitled to the allowance of development rebate and depreciation allowance for the concerned years and the grant of such allowance for the concerned years was, therefore, a mistake apparent on the face of the record and the ITO was right in acting under s. 154 of the I.T. Act and rectifying that mistake by withdrawing the allowance by the impugned orders. The Tribunal, however, did not accept this contention of the revenue and ultimately held that the mistake, if any, in the original orders of the ITOs allowing development rebate and depreciation allowance for the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and development rebate were passed. The second point is on the effect of the hire purchase agreement in question on the terms and conditions set out, and, as the Tribunal has rightly pointed out, on that aspect of the case also there may conceivably be two opinions. In view of that position, it is obvious that the decision of the Supreme Court in T. S. Balaram, ITO v. Volkart Brothers [1971] 82 ITR 50 would directly apply to the facts of the present case. Hence, the Tribunal rightly held that the power of rectification under s. 154 of the I.T. Act could not be resorted to for the purpose of withdrawing the depreciation allowance and development rebate originally allowed to the assessee in the assessment years under reference by the respecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
