TaxTMI 
TaxTMI 
1998 (4) TMI 130
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....e of the assessee, the following question is referred: "Whether, on the facts and in the circumstances of the case, depreciation as per the Income-tax (Fourth Amendment) Rules, 1983, is to be allowed in all assessments which were pending on April 2, 1983, irrespective of the assessment year involved ?" The facts in brief are as follows : The assessee is a public limited company which manufactures and sells cement. The assessment years are 1982-83 and 1983-84 for which the previous years ended on March 31, 1982, and March 31, 1983, respectively, For the assessment year 1982-83, the assessee-company filed its income-tax return on September 9, 1982, in which it claimed depreciation of Rs. 1,29,495.90. On May 15, 1984, it filed a revised retu....
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....epreciation is admissible', (1) under the heading 'I. Buildings",--- (i) for items 1, 2 and 3 and the entries relating thereto in columns 1, 2 and 3, the following items and entries shall be substituted, namely :---" The main argument of learned counsel for the assessee is, since the rules are substituted, they are deemed to have come into force with effect from April 1, 1983, though the Fourth (Amendment) Rules were brought into force on April 2, 1983 ; therefore, the Tribunal is right in holding that the assessee is entitled for higher rate of depreciation for the assessment year 1983-84. The contention of learned counsel for the assessee cannot be accepted as it is a well-settled principle of law, as held by the Supreme Court in Kari....
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....t working day of the assessment year. To verify the correctness of the order of the Tribunal, we have called for the file from the Finance Ministry. On a perusal of the file, we find that that is not the correct position. There is no reference to April 1, 1983, being a holiday and, therefore, bringing into force the amended rules with effect from April 2, 1983, as the first working day of the assessment year. The real reason is that the current pattern of the Finance Act is to notify the rates applicable one year in advance so that advance tax is calculated at the rates applicable for the next year. That was the reason why even in the budget speech, the Finance Minister has calculated the loss arising out of this additional grant of depreci....