COMMISSIONER OF INCOME-TAX VS HICO PRODUCTS (P.) LTD.
2001 P T D 2425
[247 I T R 797]
[Supreme Court of India]
Present: M. Srinivasan and U. C. Banerjee, JJ
COMMISSIONER OF INCOME‑TAX
Versus
HICO PRODUCTS (P.) LTD.
Civil Appeals Nos.2348 and 2349 (NT) of 1992, decided on 04/02/1999.
(Appeals from the judgment and order, dated October 4, 1990 of the Bombay High Court in I. T. R. No. 343 of 1975 and W. P No. 1236 of 1980).
Income‑tax‑‑‑
‑‑‑‑Depreciation‑‑‑Scientific research expenditure‑‑‑Are basically of same nature‑‑‑Double allowance not intended‑‑Retrospective amendment clarificatory and valid‑‑‑Income Tax Act, 1961, Ss.32 & 35(2)(iv)‑‑‑Indian Finance (No.2) Act, 1980‑‑‑Constitution of India, Arts. 14 & 19(1)(g)‑‑‑[CIT v. Hico Products (P.) Ltd. (1991) 187 ITR 517 reversed].
The retrospective provisions of the Finance (No.21 Act, 1980, providing that where a deduction for scientific expenditure has been allowed in respect of a capital asset to an assessee under section 35 of the Income Tax Act, 1961, no depreciation shall be allowed on that capital asset for the same or any other previous year is merely clarificatory and valid.
Escorts Ltd. v. Union of India (1993) 199 ITR 43 (SC) fol.
Held, that the Appellate Tribunal was wrong in holding that depreciation allowance should be given to the assessee even though full scientific research expenditure allowance under section 35 had been given to the assessee in respect of its laboratory in earlier years.
CIT v. Hico Products (P.) Ltd. (1991) 187 ITR 517 reversed.
M.L. Verma, Senior Advocate (Dhruv Mehta and B.K. Prasad, Advocate with him) for Appellant.
B.Y. Kulkami, Advocate for Respondent.
ORDER
It is represented that the dispute is covered by the judgment of this Court in Escorts Ltd. v. Union of India (1993) 199 ITR 43. The matter is decided in favour of the Revenue. Consequently, these appeals have to be allowed. As a result thereof the judgment of High Court in W. P. No. 1236 of 1980 (see (1991) 187 ITR 517), is set aside and the writ petition stands dismissed. Further the said reference answered by the High Court in CIT v. Hico Products (P.) Ltd. (1991) 187 ITR 517 (I.T.R. No.343 of 1975), in favour of the assessee is erroneous and the said reference is answered in favour of the Revenue. The appeals are allowed in the above terms. No costs.
M.B.A./996/FCAppeals allowed