1981 (3) TMI 94

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....ed was less than 51 per cent, the machinery installed could not be said to be for the purpose of production mainly or wholly of cotton fabrics. Holding the grant or initial depreciation of the above mentioned amount therefore as erroneous and prejudicial to the revenue, the Commr. after giving an opportunity to the assessee set aside the assessment order directing the ITO to re-do the same after consideration of the above matter relating to initial depreciation. The present appeal before the Tribunal is directed against the above order of the Commr. 2. The ld. counsel for the assessee has pointed out that there was no mistake or error in the grant of initial depreciation in the original assessment order. That the assessee is a textile mil....

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....ccount the overall production, it cannot be said that the manufacture with the new machineries is not of materials mainly of cotton. 3. For the Department, stress is laid on the order of the Commr. It is also pointed out that with regard to the new additions, the assessee is not specifically in a position to produce elaborate details to show the extent of cotton or non-cotton textiles manufactured. The onus in this regard being entirely on the assessee and without being discharged, the Commr.'s interference was proper. 4. We have considered the matter. Before dealing with the merits of the case, it requires to be noted that the Commr. in para 3 of his order has mentioned that the reference under s. 263 in this case came at a very late s....