1995 (3) TMI 13

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....y SYED SHAH MOHAMMED QUADRI J. ---- The assessee in this case is a firm which carries on the business of drilling bore-wells. For the assessment years 1981-82 and 1982-83, it claimed depreciation of 30 per cent. on the rig and compressor used in drilling the bore-wells. The Income-tax Officer allowed the depreciation at ten per cent. being of the view that the assessee was not a "mineral oil co....

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....the said claim. On appeal, the Commissioner of Income-tax (Appeals) confirmed the view of the Income-tax Officer and on further appeal, the Income-tax Appellate Tribunal took the view that the assessee is an industrial undertaking engaged in manufacturing or producing articles or things and, therefore, it is entitled to relief under the said provisions. At the instance of the Revenue, the follo....

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....82-83 ? " In so far as the first question is concerned, from the facts narrated above, it is clear that the said question is covered against the Revenue by the judgment of this court confirming the view taken by the Tribunal in CIT v. Super Drillers [1988] 174 ITR 640 (AP). Following the said judgment, the first question is answered in the affirmative, i.e., in favour of the assessee and agains....

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....ced. " This reasoning was, however, upheld by this court in the case of the very same assessee in the judgment in CIT v. Super Drillers [1988] 174 ITR 640 (AP). Our High Court came to the conclusion that the drilling operations do result in the production of underground water for use on the surface of the ground and in that sense, it must be held that the assessee is an industrial undertaking. ....