Strict construction of additional depreciation relief barred claim for assessment year 1959-60 under the time-limit provision.

Section 10(2)(via) of the Indian Income-tax Act, 1922, as amended in 1953, was construed strictly as granting only limited additional depreciation relief. The provision required that the relevant buildings, machinery or plant be installed after 31 March 1948, that the allowance be confined to no more than five successive assessment years, and that those assessment years fall within the period ending on 31 March 1959. The court held that the time-limit governed the assessment years for which the allowance was claimed, not merely the date of installation. On that construction, the assessee could not claim additional depreciation for assessment year 1959-60.

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Issues: Whether, on a true interpretation of section 10(2)(via) of the Indian Income-tax Act, 1922 as amended in 1953, the assessee was entitled to additional depreciation for the assessment year 1959-60.

Analysis: The clause was held to confer a limited relief and therefore had to be strictly construed. The provision required satisfaction of the conditions that the buildings, machinery or plant were installed after 31 March 1948, that the allowance would run for not more than five successive assessments, and that those assessments fell within the period ending on 31 March 1959. The expression relating to the period was held to govern the assessment years for which the allowance was claimed, not merely the date of installation. On this construction, the benefit could not extend to the assessment year 1959-60.

Conclusion: The assessee was not entitled to additional depreciation for the assessment year 1959-60.

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