- (1.) THE Tribunal, New Delhi has referred the following question of law under s. 256(1) of the IT Act, 1961 (hereinafter referred to as 'the Act'), for opinion to this Court : "Whether on the facts and in the circumstances of the case the Tribunal erred in law in directing the ITO to allow depreciation on diesel generator at the rate of 20 per cent -
(2.) BRIEFLY stated that facts giving rise to the present reference are as follows : The present reference relates to the asst. yrs. 1982 -83 and 1983 -84. During these years the respondent -assessee had claimed depreciation at the rate of 20 per cent on generator which was disallowed by the ITO. In appeal the CIT(A), Agra upheld order of the ITO. However, the Tribunal allowed the claim of the respondent holding that depreciation on generator at the rate of 20 per cent is allowable.
(3.) WE have heard Sri A.N. Mahajan, learned standing counsel for the Revenue. We find that in the Appendix I, which provides for rates of depreciation on different items during the relevant assessment year, as the generator has not been specifically mentioned in list of the items of special rate and, therefore, general rate of depreciation of machinery and plant which is 10 per cent per annum shall be admissible. It may be mentioned here that the generator even does not fall under any other item under special rate nor there is any such finding or authority that the generator is covered under any of the items.;