Devi Prasad Singh, J. - (1.) IN both these two income tax appeals, under Section of the Income Tax Act, 1961 (in short the 'Act') common question of law is involved. Hence both the appeals are decided by this common judgment.
(2.) THE common question of law involved in both these appeals, relates to interpretation of Explanation -5 of Sub -section (1) of Section of the Act with regard to depreciation. Brief Facts: The dispute relates to assessment year 1993 -94 with regard to depreciation extended by the Assessing Authority to the Company Assessee. The Company Assessee filed its return of income for the Assessment Year 1995 -96, showing loss of Rs. 7,28,28,563.00. The case was processed under Section of the Act. A revised return was also filed on 6.12.1996 showing the increase of loss of Rs. 8,62,34,202.00.
(3.) THE case was selected for scrutiny and the assessment was completed under Section of the Act with net loss of Rs. 2,95,38,395.00. The Assessing Officer observed that the Assessee Company has not claimed depreciation during the year 1993 -94. In spite of the fact that the Assessee Company has not claimed depreciation, the Assessing Officer took a decision for the Assessment Year 1993 -94 and had worked out and held depreciation to the Assessee Company for Rs. 20,75,12,350.00. However, the Assessee Company while filing the return for assessment year under consideration, had not accounted for depreciation allowed by the Assessing Officer.;