COMMISSIONER OF INCOME TAX Vs. SAHARANPUR ELECTRIC SUPPLY COMPANY LIMITED

JUDGEMENT

(1.) AT the instance of the Commissioner of Income-tax, the Income-tax Appellate Tribunal (Delhi Bench "C") (shortly referred to as the Tribunal) has referred to this court the following question of law :

(2.) THE material facts are these: THE respondent-assessee is a limited company which was running an electricity supply undertaking at Saharanpur. THE reference relates to the assessment year 1963-64, the corresponding previous year being the year ending on March 31, 1963. THE controversy relates to the depreciation on the service lines installed by the assessee to give electrical connection to consumers of -electricity up to March 31, 1961.

(3.) IN the appeal preferred by the assessee, the Appellate Assistant Commissioner held that the assessee was recovering only a part and not the entire cost of laying such service lines and that, in view of the earlier rulings of the Tribunal, the assessee was entitled to depreciation on the basis of the actual cost to it (the assessee) of such service lines, as determined up to the end of the assessment year 1961-62 under the old Act.