1999 (2) TMI 27

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....AGRAWAL J.---The Commissioner of Income-tax has, by this petition under section 256(2) of the Income-tax Act, 1961 (for short, "the Act"), sought a direction to the Income-tax Appellate Tribunal, Delhi (for short, the "Tribunal"), to refer the following question of law, relating to the assessment year 1984-85, to this court for opinion : "Whether, on the facts and in the circumstances of the ca....

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.... view taken by the appellate authority on a similar question in the case of the assessee in the preceding assessment year and relying upon the decision of the Supreme Court in Scientific Engineering House P. Ltd. v. CIT [1986] 157 ITR 86, the Commissioner held that the assessee was entitled to claim depreciation on the same. In the Department's appeal, the Tribunal upheld the order of the Commissi....

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....ent by the assessee on acquiring technical know-how was treated as capital expenditure by the Assessing Officer, there was no reason to disallow depreciation on it. Shri Mittal has submitted that depreciation has to be allowed on the total actual cost of the plant. On a consideration of the matter, it is manifest that depreciation under section 32 of the Act is to be allowed on the total cost o....