PANDYAN INSURANCE Co. LTD. vs COMMISSIONER OF INCOME-TAX, MADRAS — 1971 PTD 607

Citation: 1971 PTD 607

Court: Madras High Court

Year: 1968

Decision Date: 1968-10-17

Parties: PANDYAN INSURANCE Co. LTD. vs COMMISSIONER OF INCOME-TAX, MADRAS

Headnotes

Case cited as 1971 PTD 607

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title: PANDYAN INSURANCE Co. LTD. vs COMMISSIONER OF INCOME-TAX, MADRAS Case No.: Writ Petition No. 4626 of 1965 Date of Judgment:1968-10-17 Reported As: 1971 PTD 607 Result: Petition dismissed JUDGMENT JUDGMENT VEERASWAMI, J.---We are of opinion that the conclusion of the Commissioner of Income-tax, Madras, is correct, though his reasoning is not acceptable. The petitioner is a public limited company doing business in general insurance. In respect of the assessment year 1954-55, the claim for depreciation written off of buildings, air conditioning plants, lifts, etc., was allowed only to the extent of 1/5th. The result of the assessee's appeal was that the entirety of the depreciation was disallowed and the charge was enhanced. The Tribunal restored the first order with which this Court on a reference had concurred. The Supreme Court in Pandyan Insurance Co. Ltd. v. Commissioner of Income-tax ((1965) 55 I T R 716 (SC)) however. Held that the petitioner was entitled to the allowance of the entire amount of depreciation which had been written off in its accounts in the previous year relevant to the assessment year. On December 16, 1964, the Tribunal passed a consequential order under section 66-A(4). As a result, the petitioner became entitled to a refund of a substantial amount which was paid on January 31, 1955, which was within six months of the date of the order entitling the petitioner to refund.…

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