1989 (4) TMI 6

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....er section 256(1) of the Income-tax Act, 1961. The following questions of law have been referred for our opinion : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the Commissioner of Income-tax (Appeals) order who held that the assessee is entitled to depreciation at 40 per cent. on moulds used by it for making rubber containe....

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....n the manufacture of batteries. It also has a separate division for making rubber containers which are required for manufacturing batteries, In respect of moulds used for making rubber containers, depreciation at the rate of 40 per cent. was claimed by the assessee under E(2) of item III, Depreciation Schedule under rule 5, which reads thus: "E(2) : Rubber and plastic goods factories-Moulds-rat....

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....s a division for manufacturing rubber goods, that is, rubber containers used for manufacturing batteries. Accordingly, it held that E(2) of item 111, Depreciation Schedule is applicable to the assessee as the assessee can be called a factory engaged in manufacturing rubber goods as it makes rubber containers and upheld the order of the Commissioner of Income-tax (Appeals) allowing depreciation at ....

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....eferred to us in the affirmative and against the Revenue. With regard to the second question, the same is covered by a decision of this court in CIT v. MICO (Income-tax References Nos. 178 to 180 of 1979-dated February 12, 1986-CIT v. Motor Industries Co. Ltd. [1988] 173 ITR 374 (Kar) (sic)), wherein it was held that depreciation at 10 per cent. is allowable on borewells, instead of 5 per cent.....