1993 (6) TMI 45

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....irst three revisions relate to the years 1975-76, 1976-77 and 1977-78. Tax Revision Case No. 177 of 1992 relates to the year 1977-78. The order of the Appellate Tribunal relevant for the first three tax revision cases is dated October 12, 1990. The order of the Appellate Tribunal relevant for T. R. C. No. 177 of 1992 is dated February 25, 1991. A common question arises for consideration in these cases. So, we are proposing to dispose of the four revisions by this common judgment. We heard counsel for the Revenue, Senior Government Pleader, Shri V. C. James, and also counsel for the respondent Mr. Jose Joseph. The only short question that arises for consideration in these cases is as to whether the respondent-assessee is entitled to depre....

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...., machinery, plant and furniture which are the property of the assessee and are required for the purpose of deriving the agricultural income, a sum equivalent to such percentage on the written down value thereof as may in any case or class of cases be prescribed, and where the buildings have been newly erected or the machinery or plant newly installed a further sum subject to such conditions as may be prescribed : Provided that full particulars have been duly furnished : Provided further that the aggregate of all such allowances made under this Act, shall in no case exceed the original cost to the assessee of the buildings, machinery, plant or furniture, as the case may be ;" The section positively says that it is only in respect o....

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....of the Act. But there is no such finding entered by the Appellate Tribunal. So, we are Of the view that the Appellate Tribunal should peruse the agreement entered into by the assessee and verify whether the last instalment due under the hire purchase agreement has been paid before the particular assessment year has begun. If the last instalment has been paid, the assessee becomes the owner of the machinery and from then onwards he will be entitled to the allowance for depreciation, etc. The Appellate Tribunal has not cared to go through the terms of the hire purchase agreement or to understand its terms nor has the Appellate Tribunal verified as to whether the entire instalments due on hire purchase agreement has been paid. These are essent....