- (1.) The Tribunal, Allahabad, has referred the following two questions of law under Section 256(1) of the IT Act, 1961 ('the Act'), for opinion to this Court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that amendment of the IT Rules, 1962 as amended by CBDT's Notification SO 562(E), dt. 24th July, 1980 cannot be applied to the assessee's case in the assessment year in 1981-82, because the accounting period relevant to the assessment year in question had already ended on 30th June, 1980 ?
(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in confirming the order of the CIT(A), who has confirmed allowance of depreciation on transport vehicles @ 30 per cent ? 2. The present reference relates to the asst. yr. 1981-82. Briefly stated, the facts giving rise to the present reference are as follows : The applicant-assessee is a limited company and it runs transport vehicles on hire, The accounting period relevant to the assessment year in question had ended on 30th June, 1980. The ITO had allowed depreciation on the transport vehicles @ 30 per cent. The applicant-assessee carried the matter in appeal before the CIT(A). It was submitted before him that the rate of depreciation was enhanced from 30 per cent to 40 per cent by Notification No. SO 562(E), dt. 24th July, 1980 issued by the CBDT, It was, therefore, claimed that during the assessment year under consideration, namely, 1981-82, depreciation on transport vehicles should have been allowed @ 40 per cent. This contention was rejected by the CIT(A). He has held that the applicant-assessee is not entitled to higher rate of depreciation. He noted that the higher rate of depreciation became applicable from a period after the end of the accounting period. He, therefore, confirmed the order of the ITO restricting the rate of depreciation at the old rates. The applicant-assessee carried the matter in further appeal before the Tribunal. It was submitted that the depreciation rules have been amended vide notification dt. 24th July, 1980. It was also submitted on applicant-assessee's behalf that the IT Act, as it stands amended on the first day of April of any financial year must apply to the assessment of that year. In support of that view reliance was placed on the case of Karimtharuvi Tea Estate Ltd. v. State of Kerala AIR1966 SC 1385 , [1966 ]60 ITR262 (SC ), [1966 ]3 SCR93 . On the basis of that decision it was urged that the rate of depreciation, which stands amended w.e.f, 24th July, 1980 would be applicable for the year under consideration. On the other hand, it was contended on behalf of the Revenue that the accounting period of the applicant-assessee had ended on 30th June, 1980 i.e., before the rules were amended. It was also submitted that during the assessment year in question the income of the accounting period is brought to tax and as such the benefit of the said amendment is not available to the applicant-assessee. The Tribunal found favour with the contention advanced on behalf of the Revenue. The Tribunal also observed that similar issue had arisen in the case of Motor Sales Ltd [ITA No. 2361/All/1984, dt. 16th Oct., 1987], the issue was decided in favour of the Revenue. The Tribunal was of the view that no reasons exist to depart from the view adopted in that case. Therefore, the appeal by the applicant-assessee was dismissed.
(3.) We have heard Sri R.S. Agrawal, learned counsel for the applicant and Sri A.N. Mahajan, learned standing counsel for the Revenue.;