1984 (2) TMI 121

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....entitled to depreciation at the higher rate of 15 per cent. The ITO passed the assessment order on 5th July, 1980 for the asst. yr. 1977-78 accepting the claim of the assessee that depreciation on furnaces was allowable at 15 per cent on the ground that they came into contact with corrosive substances. The Commissioner felt that the order was erroneous in so far as it was prejudicial to revenue an....

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....appeal. The CIT, however, negatived this contention relying on the order of the Punjab and Haryana in CIT Patiala II vs. Saraswati Industrial Syndicate Ltd. (1981) 23 CTR (P&H) 6 : (1982) 136 ITR 758 (P&H). He also rejected the contention that the matter had become final in 1969-70 itself by stating that the Depreciation Schedule had been changed w.e.f. 1st April, 1970 where the method of allowing....

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....n nature. He also showed us photographs of the furnaces where the linings and sometimes even the furnaces have been eaten away by the chemicals. He accordingly urged that the furnaces did come into contact with corrosive chemicals. (a) As regards the applicability of the decision of the Punjab and Haryana High Court he submitted that the facts in that case were distinguishable. There lime and a....