Court rules for assessee on depreciation, capital expenses, transit loss, but against on interest income, rent claim. Consistency emphasized.

The Court ruled in favor of the assessee on issues regarding depreciation on assets for a non-operational unit, depreciation rate for a tube well, treatment of capital expenses, and deduction for loss on goods in transit. However, the Court decided against the assessee on the classification of interest income and claim for rent in a "Transit Guest House." The appeal was partly allowed, with the Court emphasizing consistency with previous judgments and the specific circumstances of each issue.

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Issues:
1. Depreciation on assets for a unit not yet operational
2. Classification of interest income from loans and deposits
3. Depreciation rate for tube well
4. Claim for rent in "Transit Guest House"
5. Treatment of capital expenses as revenue expenses
6. Deduction for loss on goods in transit

Issue 1 - Depreciation on assets for non-operational unit:
The Tribunal held in favor of the assessee based on consistency with previous years where the Department accepted the same issue. Citing precedents like Radhasoami Satsang and Berger Paints India Ltd, the Court decided in favor of the assessee and against the Department.

Issue 2 - Classification of interest income:
The Court ruled against the assessee based on a previous judgment in the assessee's own case for the Assessment Year 1990-1991. The issue was decided in favor of the Department.

Issue 3 - Depreciation rate for tube well:
The Court found in favor of the assessee as the issue was previously allowed in the assessee's favor for the year 1993-94. Since the Department accepted the decision in the previous year, the Court maintained consistency and decided in favor of the assessee.

Issue 4 - Claim for rent in "Transit Guest House":
The Court ruled against the assessee based on a previous judgment in the assessee's own case for the Assessment Year 1993-94. The issue was decided in favor of the Department.

Issue 5 - Treatment of capital expenses:
The Court found that the issue did not arise for consideration based on a previous judgment in the assessee's own case for the Assessment Year 1993-94. Consequently, the issue was decided against the Department and in favor of the assessee.

Issue 6 - Deduction for loss on goods in transit:
The Tribunal directed the Assessing Officer to allow the loss in the current year subject to the assessee giving up the claim for the previous year. The Court decided in favor of the assessee and against the Department, stating that no prejudice was caused to the Revenue by allowing the claim.

In conclusion, the appeal was partly allowed based on the Court's decisions on each issue, considering consistency with previous judgments and the specific circumstances of each matter.

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