Rajes Kumar, J. - (1.) The Income Tax Appellate Tribunal, has referred the following question of law under Section 256 (1) of the Income Tax Act, 1961 ( hereinafter referred to as Act") for the assessment year 1989-90 for opinion to this Court. "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to grant of depreciation at the rate of 100% on the cost of high efficiency boiler installed and used in the assessee's factory.?"
(2.) The brief facts of the case are as follows:The assessee/opposite party hereinafter referred to as 'assessee') is Cooperative Society and runs a Sugar Factory as well as a Distillery Unit. The facts of the case are that the assessee claimed 100% depreciation on a high efficiency boiler installed and used in the year relevant to the assessment year The Assessing Officer was of the view that the assessee had used bagasse as fuel instead of coal and the boiler did not have an efficiency of 75% with economizer and with coal as fuel and, therefore, the assessee was not entitled to 100% depreciation.
(3.) The assessee preferred an appeal against the said order before the CIT (Appeals). The C.I.T.(Appeals) restored back the issue to the Assessing Officer for providing one more opportunity to the assessee to prove that the boiler has the intrinsic efficiency of 75% if coal was used as fuel.;