CHITTOOR MOTOR TRANSPORT PRIVATE LIMITED CHITTOOR Vs. COMMISSIONER OF INCOME TAX ANDHRA PRADESH HYDERABAD
HIGH COURT OF ANDHRA PRADESH
CHITTOOR MOTOR TRANSPORT PRIVATE LTD., CHITTOOR
COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH, HYDERABAD
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Chandra Reddy, J. -
(1.) The question to be answered by us in this reference under Section 66 (1) of the Indian Income-tax Act is formulated in these words : "Whether the new diesel engines purchased and fitted to the old buses during the account year constituted plant or machinery within the meaning of Section 10 (2) (vi-a) and Section 10 (2) (vi-b) so as to be entitled for additional depreciation allowance and development rebate respectively under those provisions."
(2.) Before we deal with the question of law posed in this reference, it is useful to set out the facts giving rise to this reference as briefly as possible.
(3.) The assessee is a private limited Company carrying on the business of motor transport. The relevant assessment year is 1957-58, the accounting year being 1.4-1956 to 31-3-1957. In the year of account, the assessee replaced the petrol engines by diesel engines in four of the vehicles and claimed inter alia additional depreciation allowance and development rebate in respect thereof under Section 10 (2) (vi-a) and Section 10(2) (vi-b) respectively. These allowances were disallowed by the Income-tax Officer, which order was affirmed on appeal, by the Appellate Assistant Commissioner and, on further appeal, by the Income-Tax Appellate Tribunal.;
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