Ramaswami, J. - (1.) This appeal is brought, by special leave, from the judgment of the High Court of Kerala dated March 26, 1962, in Income- tax Referred Case No. 16 of 1960.
(2.) For the assessment year 1955-56 the appellant, a firm carrying on the business of exporting frozen prawns, made a claim for initial and additional depreciation under sections 10(2)(vi) and 10(2)(via) of the Income Tax Act, 1922, in respect of a one-ton Flake Ice Machine and two reconditioned "Jackstone Junior Frosters Mark II", each of the latter purchased at Pounds 1,338-15-0 from Messrs. Jackstone Frosters Ltd., London, and imported into India and used for its business. In regard to the flake Ice Machine the Income-tax Officer allowed the depreciation. In regard to the reconditioned "Jackstone Junior Frosters Mark II", the suppliers, viz., Messrs. Jackstone Frosters Ltd. of England wrote to the appellant on March 20, 1958, as follows : "We confirm that the two Jackstone Junior Mark II Frosters which you purchased from us in June, 1954, were completely stripped and reassembled to incorporate the latest modifications and were covered by our twelve months guarantee as in the case of new Frosters."
(3.) In reply to a further letter from the Income-tax Officer the suppliers wrote on May 19, 1958, thus : "The two Jackstone Junior Frosters purchased by the above from us in June, 1954, were completely stripped, worn parts renewed and the latest modifications incorporated before being shipped to our customers. It is confirmed that from the time of reassembly to the date of their arrival in Cochin neither Frosters was in use. We would also add that both Frosters were issued with our twelve months guarantee which normally applies only to new machines." ;