(Appeals from the judgment and order dated July 30, 1980, of the Karnataka High Court in Income-tax Referred Cases Nos. 89 to. 91 of 1977. The judgment of the High Court is reported as C.I.T. v. Indian Telephone Industries Ltd. (1980) 126 ITR 548 (Ker.)).

Income-tax---

----Depreciation---Scientific research---Capital allowance---Entire expenditure allowed in year of purchase of assets---Depreciation allowance on same assets for subsequent years was not permissible.

From the decision of the Karnataka High Court in C.I.T. v. Indian Telephone Industries Ltd. (1980) 126 ITR 548 that, notwithstanding that the whole of the capital expenditure incurred in respect of assets meant for scientific research had been deducted in the year of purchase, the respondent was entitled to depreciation on those assets for subsequent years, the Department preferred appeals to the Supreme Court. The Supreme Court allowed the appeals in view of the subsequent amendment of section 35 of the Indian Income-tax Act, 1961, with retrospective operation.---[C.I.T. v. Indian Telephone Industries Ltd. (1980) 126 ITR 548 reversed].

C.I.T. v. Indian Telephone Industries Ltd. (1980) 126 ITR 548 reversed.

Dr. V. Gauri Shankar, Senior Advocate (Manoj Arora and Ms. A. Subhashini, Advocates with him) for Appellant.

Nemo for Respondent.

ORDER

These appeals by the revenue are against the judgment of the Karnataka High Court in C.I.T. v. Indian Telephone Industries Ltd. (1980) 126 ITR 548. In view of the subsequent amendment of section 35 of the Income-tax Act with retrospective operation, the appeals have to be allowed. We do so.

M.BA./1231/TAppeals allowed