Commissioner Of Income Tax vs K & Co.
2002 Latest Caselaw 2012 Del

ORDER

1. Having heard learned counsel for the parties, we are of the view that the order of the Tribunal does involve substantial questions of law,

2. Admit.

3. The following questions of law are framed for adjudication :

"(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in directing the AO to recompute the assessed's income by adopting the changed method of accounting ?

(2) Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the assessed-firm was entitled to the full depreciation as claimed in respect of vehicles acquired and leased out by it on 30th Sept., 1993/31st March, 1994, even though the said vehicles were not put to use during the accounting period ?"

4. Insofar as proposed question No. (c) is concerned, the Tribunal has merely upheld the order passed by the CIT(A) remanding the matter back to the AO for reconsideration of the question of depreciation in case the assessed produces the relevant documents in support of the claim. In our opinion, the said direction does not give rise to a question of law, much less a substantial question of law. Similarly, insofar as the question of treating the expenditure incurred by the assessed on maintenance of computer and their upgradation is concerned, we are in agreement with the Tribunal that the same is in the nature of revenue expenditure. It is pertinent to note that the AO, while granting depreciation @ 33.33 per cent on the software, had himself observed that the life of the software was three years. The percentage of such allowance had been fixed by the AO on his own. In our opinion no substantial question of law arises from this issue as well.

5. The appellant shall file within three months ten copies of the cyclostyled paper books, containing all documents on which reliance was placed before the Tribunal, including any order/orders, either in the case of the assessed itself or in case of any other assessed, which has been followed by the Tribunal.

The appeal be listed for hearing in the regular course.