Assessee wins tax case: depreciation, development rebate allowed; relief for foreign dividends granted.

The court ruled in favor of the assessee on all issues, including entitlement to depreciation on certain expenses and development rebate. The court also granted relief under Section 90 and/or 91 for foreign dividends. The decision aligned with principles established by the Himachal Pradesh High Court, resulting in a favorable outcome for the assessee without costs awarded.

---

---

Issues involved: Two references u/s 256(1) of the Income-tax Act, 1961 for assessment years 1963-64 and 1964-65.

Depreciation and Development Rebate: The court agreed that the assessee was entitled to depreciation on interest and foreign tour expenses capitalized in earlier years, as reduced by the depreciation directed by the Tribunal. Regarding development rebate, it was agreed that the assessee was entitled to it on capitalized interest, foreign tour expenses, cost of telephone lines for internal system, and cost of power transformers for proper plant functioning. The principles laid down by the Himachal Pradesh High Court were followed, leading to a decision in favor of the assessee for all items under question No. (2).

Relief under Section 90 and/or 91: The court, based on previous decisions, concluded that the assessee was entitled to relief under section 90 and/or 91 on the gross amount of foreign dividends. The decision was made without further discussion.

Conclusion: The court answered all questions in favor of the assessee, citing relevant legal precedents. No costs were awarded in the case.

---