Amended depreciation rate applied from commencement date, and rectification was allowed despite a debatability objection.

The amended depreciation rate introduced by the Income-tax (Fifth Amendment) Rules, 1980 was held to operate from its stated commencement, because a rule expressed to come into force at once applies from that date and is not confined to the succeeding assessment year. On that basis, the enhanced depreciation rate applied to assessments pending or completed after 24-7-1980. The objection that the issue was debatable was rejected in rectification proceedings, since the express commencement language left no genuine scope for doubt and a patent mistake could be corrected.

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Issues: Whether the amended depreciation rate introduced by the Income-tax (Fifth Amendment) Rules, 1980, which stated that it would come into force at once, applied to assessments completed after its commencement for assessment year 1980-81, and whether relief could be denied on the ground that the matter was debatable in rectification proceedings.

Analysis: The effective date expressly fixed by the rule-making authority controlled its operation. A rule stating that it comes into force at once could not be confined merely to the succeeding assessment year when the language showed an intention to operate from the date of commencement. On that basis, the enhanced depreciation rate applied to assessments pending or completed after 24-7-1980. The plea of debatability was rejected because, for the income-tax authorities, the rule left no genuine scope for doubt once its commencement date was expressly specified, and a patent mistake ought not to be allowed to remain uncorrected on a technical objection.

Conclusion: The assessee was entitled to depreciation at 40 per cent and the assessment was liable to be rectified accordingly.

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