- (1.) THE Tribunal, New (sic) Allahabad, 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 was legally justified in upholding the action of the AAC in directing the ITO to allow depreciation on generator at the special rate of 20 per cent -
(2.) BRIEFLY stated the facts giving rise to the present reference are as follows : The present reference relates to the asst. yr. 1985 -86. During this year the respondent assessee had claimed depreciation @ 20 per cent on generator, which was allowed by the ITO @ 10 per cent. However, the Tribunal allowed depreciation on generator at the special rate of 20 per cent accepting the claim of the respondent assessee.
(3.) WE have heard Shri R.N. Upadhyaya, the learned counsel for the Revenue. Nobody has put in appearance on behalf of the respondent. 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.;