M.M.KUMAR, J. - (1.) THE Revenue has approached this Court by filing the instant appeal under s. 260A of the IT Act, 1961 (for brevity, 'the Chandigarh (for brevity, 'the Tribunal'), in ITA No. 388/Chd/2001, in respect of the asst. yr. 1996 -97. the asst. yr. 1996 -97 declaring loss of Rs. 4,55,41,581. It is apposite to mention here that the trial production of sugar consumed raw material in the form of sugarcane worth Rs. 2,80,71,662 and has shown manufacturing expenses of Rs. machinery and building etc. was allowed at Rs. 4,37,61,018. was not entitled to depreciation because it had not started commercial production of sugar during the relevant period. It was directed that the AO would pass fresh order after disallowing the depreciation amounting to Rs. 4,37,61,018.
(2.) AGAINST the aforementioned order of the CIT, the assessee preferred an appeal before the Tribunal, which was allowed was neither erroneous nor prejudicial to the interest of the Revenue.
(3.) THE AO in pursuance to order under s. 263, passed another order of assessment under s. 143(3) of the Act on 1st Delhi, which is stated to be pending for adjudication. Learned counsel for the Revenue submitted before us that the following question of law would 4arise in this matter for determination of this Court : "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the order passed by the CIT under s. 263 by holding that the assessment order is neither erroneous nor prejudicial to the interest of the Revenue in spite of the fact that depreciation on plant and machinery, etc. was allowed by AO without the commencement of production of sugar on commercial basis - ;