1991 (4) TMI 210

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.... business. For this the assessee relied on the Income-tax (Fifth Amendment) Rules, 1980 which came into force from 24th July, 1980 whereby the rate of depreciation was increased to 40% from 30% on motor vehicles used for transport business. This was allowed by the Dy. Commissione (Appeals) by following the decision of the CIT(Appeals)-II, Madras, in another order in ITA No. 132/84-85 dated 30-12-1987. Accordingly he directed the ITO to allow depreciation at 40%. This is being objected to by the Revenue in the present appeal before the Tribunal. 2. According to the Revenue, the rate of 40% referred to in the Schedule came into effect from the assessment year 1981-82 onwards and that the Dy. Commissioner(Appeals) erred in allowing the asse....

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....ed Third Member in the case of Davinder Arora. In paragraph 43 at page 128 of 18 ITD, the Special Bench examined the effect of a Notification by comparing and contrasting the amendment brought about in the depreciation schedule by the Income-tax (Fourth Amendment) Rules and the Income-tax (Third Amendment) Rules which were notified on the same date, namely, 26-2-1983, but were brought into force with effect from two different dates. I quote below the said paragraph 43 for facility of reference : " 43. We have earlier pointed out that the Income-tax (Fourth Amendment) Rules was preceded by the Income-tax (Third Amendment) Rules. The Income-tax (Third Amendment) Rules was notified on 26-2-1983 with effect from that day, while the Income-ta....

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....em together under the head 'Energy saving devices'. We do not think that one can or should invest the Government with such purpose less intention in the discharge of its statutory functions. We must, on the other hand, consider that it was the intention of the Government in prescribing these notifications, to allow depreciation on such items of machinery only at 30 per cent for the assessment year 1983-84 following the date of the notification, namely, 26-2-1983 regarding Income-tax (Third Amendment) Rules and that higher rate of depreciation is to be allowed on these items of machinery for the assessments following the Income-tax (Fourth Amendment) Rules, namely, the assessment years coming up after 2-4-1983, i.e., 1984-85 assessment year ....