1985 (2) TMI 112

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e is entitled to depreciation at 30 per cent on the rigs and compressors which are mounted on a lorry and used for drilling borewells. 2. The assessee-firm carries on the business of drilling borewells. In the course of assessment proceedings for the assessment year 1978-79, the assessee claimed depreciation at 30 per cent on the rigs and compressors under Item No. III(ii), D(9) of Part I of Ap....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....order of the AAC is supported by the view consistently taken by the Tribunal in such cases. The details of some of the cases are Popular Borewell Service's case, Bharat Rig Service [IT Appeal No. 1427 (Mad.) of 1980], O.P. Palaniappan [IT Appeal No. 1279 (Mad.) of 1981], Tiruchengode Borewell Service [IT Appeal No. 935 (Mad.) of 1981], Bharat Rig Service [IT Appeal Nos. 76 and 2536 (Mad.) of 1983]....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....To the same effect is the view of the Madras High Court in the case of CIT v. L.G. Ramamurthi [1977] 110 ITR 453. According to this authority, if a Bench of a Tribunal on the identical facts is allowed to come to a conclusion directly opposed to the conclusion reached by another Bench of the Tribunal on an earlier occasion, that will be destructive of the intitutional integrity itself. In view of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... rigs and compressors mounted on a lorry and used for drilling borewells. It is clearly mentioned in the order of the Third Member that there was no dispute between the Members as to the grant of depreciation at 30 per cent. The dispute related only to the grant of investment allowance under section 32A(2)(b) of the Income-tax Act, 1961. This would be evident from the question referred to the Thir....