Prakash Krishna, J. - (1.) The Income Tax Appellate Tribunal, Allahabad has referred the following question of law for the opinion of the Court, under Section 256 (1) of the Income Tax Act, 1961, hereinafter referred to as the Act. "Whether on facts and circumstances of the case, the Income Tax Appellate Tribunal was justified to hold that depreciation on machinery used in an ice factory is admissible at the rate of 15%?"
(2.) Assessment year 1977-78 is involved. The assessee/respondent is a limited company and it derives income from sale of ice and medicines. The only issue relates to the rate of depreciation allowable on ice manufacturing machinery. It was allowed at the rate of 5% by the I.T.O. on the ground that the machinery used in ice factory consisted mainly condensers. This order was modified by the CIT (Appeals). It allowed the depreciation at the rate of 10% as admissible to the general machinery. He was of the view that the machinery of ice factory is not specified separately in the depreciation Schedule in the Income Tax Rules 1962. The Tribunal has held that the depreciation at the rate of 15% was allowable to the assessee on the ice factory.
(3.) Heard Shri A.N. Mahajan, learned Standing Counsel for the Revenue. Nobody appeared for the assessee.;