ADDITIONAL COMMISSIONER OF INCOME TAX Vs. SARVARAYA SUGARS LIMITED

JUDGEMENT

(1.) IN these two cases referred under s. 256 (1) of the I. T. Act, 1961, the question for decision is :

(2.) THERE is no pronouncement of this court one way or the other on this question. As the decision on this question would affect a large number of seasonal factories, the matter has been referred to the Full Bench.

(3.) SECTION 32 of the I. T. Act, 1961, provides for allowing deduction in respect of depreciation of buildings, machinery, plant or furniture owned by the assessee and used for the purpose of business or profession. In the case of buildings, machinery, plant or furniture other than ships, covered by clause (1) depreciation is allowed at such percentage on the written down value therof as prescribed. That provision, in so far as it is relevant for our present purpose, reads as follows :