- (1.) THE Income Tax Appellate Tribunal, New Delhi has refer -red the following question of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for opinion to this Court : 'Whether, the Honble Tribunal was legally justified in allowing higher depreciation allowance at the rate of 15 per cent instead of Cinema Building without properly appreciating the facts of the case when the assessee had itself claimed depreciation of Cinema Building at the rate of 10 per cent
(2.) BRIEFLY stated the facts giving rise to the present reference are as follows: The reference relates to the assessment year 1985 -86. The respondent -assessee is a public limited company which derives income from financing of vehicles on hire purchase basis, transportation work, running cinema hall, exhibition of pictures, etc. It claimed depreciation at the rate of 10 per cent on the cinema building owned by it which was allowed in the assessment proceedings. However, in the appeal filed by the respondent -assessee it claimed depreciation of 15 per cent on cinema building alleging it to be a plant which was allowed. The Tribunal has upheld the order.
(3.) WE have heard Shri A.N. Mahajan, the learned standing counsel for the department and Shri R.S. Agarwal, the learned counsel appearing for the respondent -assessee.;