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C.I.T. v. J.S.Factory - INCOME TAX REFERENCE No. 160 of 1989  RD-AH 7874 (27 April 2007)
Hon'ble Sushil Harkauli, J.
Hon'ble Ajai Kumar Singh, J.
Learned counsel for the assessee expired several years ago. If the assessee has not bothered about this case and has not tried or cared to contact his counsel for the past so many years, we do not think it necessary to waste further time in issuing notice to the assessee in this old reference of the year 1989.
Two questions have been referred in this reference.
In the case of Janta Sugar Industries Vs. C.I.T reported in 2005 UPTC 676, a Division Bench of this Court held that investment allowance under Section 32 A cannot be refused for machinery on the ground that it has not been put to use during the year under consideration. We see no good reason to take a different view. The question No. 1, which has been referred is answered accordingly.
In the same decision of Janta Sugur Industries, it has been held that depreciation on a generator is permissible @ 10%.
We do not find any good reason to take a different view.
We therefore, answer the second question referred by holding that the Tribunal was not correct in directing the assessing officer to allow depreciation on generator @ 20% and the rate should have been only 10%.
Reference answered accordingly.
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