| Case ID |
5cb028e5-1e1c-4258-9a8c-5774301d40b9 |
| Body |
View case body. Login to View |
| Case Number |
TAX CASE Nos. 1091 TO 1093 OF 1979 |
| Decision Date |
Jan 29, 1985 |
| Hearing Date |
|
| Decision |
The Madras High Court held that the nature of the enquiry in determining whether machinery qualifies as 'electrical machinery' involves investigating if the electric motor is an integral part of it. The Court remanded the case to the Tribunal to reassess the claim for depreciation based on this criterion, emphasizing that mere reliance on the use of electricity is insufficient to categorize machinery as electrical. The previous ruling in CIT v. M.S. Sahadevan was referenced to clarify that machinery must have an in-built electric motor to qualify for depreciation under the specified rules. |
| Summary |
In the case of Commissioner of Income Tax v. Chandra Litho Press, the Madras High Court analyzed whether offset machinery used by the assessee qualified as 'other electrical machinery' under the Income-tax Rules, 1962. The assessee claimed a 10% depreciation rate based on the machinery's reliance on electricity. The Income Tax Officer initially denied this claim, stating the machinery did not generate electricity. However, the Tribunal overturned this decision, leading to the reference before the High Court. The Court clarified that the definition of 'electrical machinery' requires an investigation into whether the electric motor is an integral part of the machinery, reiterating its stance from a prior case, CIT v. M.S. Sahadevan. The Court remanded the case for further investigation into the nature of the machinery and its components, emphasizing the importance of the motor's integration into the machinery for classification as electrical. This case highlights the nuanced interpretation of tax regulations concerning depreciation claims for machinery reliant on electricity. |
| Court |
Madras High Court
|
| Entities Involved |
Commissioner of Income Tax
|
| Judges |
Ramanujam,
M.A. Sattar Sayeed
|
| Lawyers |
J. Jayaraman,
N.V. Balasubramanian
|
| Petitioners |
Not available
|
| Respondents |
Chandra Litho Press
|
| Citations |
1986 SLD 1621,
(1986) 159 ITR 670
|
| Other Citations |
CIT v. M.S. Sahadevan [1980] 123 ITR 820 (Mad.)
|
| Laws Involved |
Income-tax Rules, 1962
|
| Sections |
Item III(iii)E(3)(b)
|