2000 (2) TMI 17 - SCH - Income Tax

Supreme Court overturns order, refers poultry sheds depreciation question to High Court.

The Supreme Court allowed the appeal, setting aside the challenged order. The Tribunal was instructed to refer the question on treating poultry sheds as ... Treatment of asset as plant for depreciation - question of law - reference by Tribunal to the High Court for decision on a question of lawTreatment of asset as plant for depreciation - question of law - Whether the Tribunal should be directed to refer to the High Court the question whether poultry sheds are to be treated as plant for higher rate of depreciation. - HELD THAT: - The Supreme Court held that the matter involves a question of law and that the High Court ought to have required the Income-tax Appellate Tribunal to refer the specific question to it. Although the Tribunal had followed the High Court's earlier judgment in CIT v. Sri Venkateshwara Hatcheries (P.) Ltd., which had itself been the subject of a belated petition to this Court, the present appeal required that the question be considered on its merits by the High Court. Consequently the appropriate course is to direct the Tribunal to draw up a statement of case and refer the posed question to the High Court for decision, permitting the High Court to take the earlier judgment into account when adjudicating the legal issue.The High Court's order declining to call for a reference is set aside and the Tribunal is directed to refer the stated question to the High Court after drawing up a statement of case.Final Conclusion: Appeal allowed; the order under challenge is set aside and the Tribunal is directed to refer the specified question of law to the High Court for decision after drawing up a statement of case; no order as to costs. The Supreme Court allowed the appeal and set aside the order under challenge. The Tribunal was directed to refer a question regarding the treatment of poultry sheds as plant for higher depreciation rate to the High Court for decision.