| Case ID |
38087a85-153e-4cc6-ae09-402a96cf6020 |
| Body |
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| Case Number |
Income-tax Reference No.264 of 1980 |
| Decision Date |
Jan 29, 1993 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal has referred questions regarding depreciation and capital computation under the Income Tax Act to the Gujarat High Court. The court ruled that the assessee is not entitled to depreciation on costs written off for scientific research as per the earlier provisions of the law. The 1980 amendment did not change this interpretation. Additionally, the court clarified that while computing capital employed for special deductions, borrowed moneys and debts must be excluded, affirming the position established in previous Supreme Court rulings. |
| Summary |
This case involves the Income-tax Reference No. 264 of 1980, decided by the Gujarat High Court on January 29, 1993. The main issues revolved around the entitlement of the assessee, ANIL STARCH PRODUCTS, to claim depreciation on assets used for scientific research and the treatment of borrowed funds in capital computations under Section 80-J of the Indian Income Tax Act, 1961. The court emphasized that under the Income Tax Ordinance, 1979, and the provisions of the Indian Income Tax Act, 1961, particularly sections 32 and 35, the costs of capital assets written off for scientific research do not qualify for depreciation. The ruling referenced earlier Supreme Court decisions, reinforcing that the law remained consistent before and after the 1980 amendment. This case highlights the importance of understanding tax deductions related to scientific research and the specifics of capital computation, providing clarity for future cases in similar contexts. |
| Court |
Gujarat High Court
|
| Entities Involved |
COMMISSIONER OF INCOME TAX,
ANIL STARCH PRODUCTS,
SUPERINTENDENT OF POLICE CITY DIVISION, GUJRANWALA
|
| Judges |
G. T. NANAVATI,
S.M. SONI
|
| Lawyers |
J.P. Shah for the Assessee,
M. J. Thakore instructed by M.R. Bhatt of Messrs R.P. Bhatt and Co. for the Commissioner
|
| Petitioners |
ANIL STARCH PRODUCTS
|
| Respondents |
COMMISSIONER OF INCOME TAX,
SUPERINTENDENT OF POLICE CITY DIVISION, GUJRANWALA
|
| Citations |
1994 SLD 100,
1994 PTD 803,
(1993) 203 ITR 387
|
| Other Citations |
Escorts Ltd. v. Union of India (1993) 199 ITR 43 (SC),
Lohia Machines Ltd. v. Union of India (1985) 152 ITR 308 (SC)
|
| Laws Involved |
Income Tax Ordinance, 1979,
Indian Income Tax Act, 1961
|
| Sections |
32,
35,
80-J
|