Appeal outcome: Appellant wins on income tax issue, respondent prevails on depreciation calculation. No costs awarded.

The appeal was decided in favor of the appellant-assessee on the taxability of alleged income from Advance Licence Benefit Receivable for the Assessment year 1994-95, following a precedent set by the Supreme Court. However, on the computation of depreciation for deduction under sections 80I and 80IA of the Income Tax Act, the decision favored the respondent-revenue based on a previous court ruling. Regarding the justification of thrusting depreciation on all block of assets without a claim, the appellant-assessee prevailed, citing a decision by the Gujarat High Court. The appeal was disposed of without any costs awarded.

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Issues Involved:
1. Taxability of alleged income from Advance Licence Benefit Receivable for Assessment year 1994-95.
2. Computation of depreciation for eligible industrial undertakings for deduction u/s 80I and 80IA of the Income Tax Act.
3. Justification of thrusting depreciation on all block of assets even without a claim.

Issue 1: Taxability of Advance Licence Benefit Receivable
The appeal challenges the Tribunal's order regarding the taxability of alleged income from Advance Licence Benefit Receivable for the Assessment year 1994-95. The substantial question of law raised is whether the said income, although accrued in subsequent years, is taxable in the year under consideration. The counsel for both parties agree that the issue is settled in favor of the appellant-assessee by the Supreme Court's decision in The Commissioner of Income Tax vs. M/s Excel Industries Ltd. Consequently, the question is answered in the negative in favor of the appellant-assessee and against the revenue.

Issue 2: Computation of Depreciation for Deduction u/s 80I and 80IA
The second substantial question of law pertains to the computation of depreciation for eligible industrial undertakings for the purpose of deduction under sections 80I and 80IA of the Income Tax Act. The appellant's counsel concedes that the issue is settled against the appellant-assessee by the decision of the Court in Plastiblends India Ltd versus Addl.CIT. Therefore, the question is answered in the affirmative, favoring the respondent-revenue and against the appellant-assessee.

Issue 3: Thrusting Depreciation on All Block of Assets
The third issue concerns the justification of thrusting depreciation on all block of assets even without a claim. The appellant's counsel argues that the issue is settled in favor of the appellant-assessee by the decision of the Gujarat High Court in JCIT vs. United Phosphorous Limited. The counsel for the revenue confirms that no appeal has been filed against the Gujarat High Court's decision. Consequently, following the Gujarat High Court's decision, the substantial question is answered in the negative, favoring the appellant-assessee and against the revenue.

In conclusion, the appeal is disposed of based on the above analysis, with no order as to costs.

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