COMMISSIONER OF INCOME-TAX, U. P. vs KAILASH MOTORS — 1976 PTD 458

Citation: 1976 PTD 458

Court: Allahabad High Court

Year: 1970

Decision Date: 1970-11-16

Parties: COMMISSIONER OF INCOME-TAX, U. P. vs KAILASH MOTORS

Headnotes

Case cited as 1976 PTD 458

Judgment Text

Court Name: Allahabad High Court Judge(s): H. N. Seth, V. G. Oak Title: COMMISSIONER OF INCOME-TAX, U. P. vs KAILASH MOTORS Case No.: Income-tax Reference No, 325 of 1965 Date of Judgment:1970-11-16 Reported As: 1976 PTD 458 Result: Order accordingly Judgment JUDGEMENT V. G. OAK, C. J.-This is a reference under the Income-tax Act. Messrs Kailash Motors, Dehradun, is the assessee. The assessm ent year is 1961-62. The assessee is a dealer in motor trucks. It has a factory for repairing and servicing trucks sold by it. The cost of the land was Rs, 1,01,254. The cost of the building constructed on this land was Rs, 1,01,101 The total investment on land and superstructure came to Rs, 2,08,356. The assessee claimed depreciation on the entire cost of Rs, 2,08,356 under section 10(2)(iv) of the Indian Income-tax Act, 1922. The Income-tax Officer was not agreeable to allow any depreciation on the cost of the land. He allowed depreciation on Rs, 1,01,102 representing the cost of the superstructure. The view was upheld in appeal by the Appellate Assistant Commissioner. When the matter went before the Appellate Tribunal, there was difference of opinion between the members. The Judicial Member of the Tribunal held that depreciation could be allowed on the superstructure only, and not on the land. On the other hand, the Accountant Member was of the view that depreciation had to be allowed for land as well as superstructure. The matter was referred to the President of the Tribunal as…

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