CIT Vs G. M. Knitting Industries (P) Ltd. (Supreme Court of India)
The Supreme Court considered appeals involving the allowability of additional depreciation where Form 3AA had not been filed along with the return of income but had been furnished during the course of assessment proceedings before the final assessment order was passed.
The Supreme Court reproduced paragraph 2 of the impugned order of the High Court, which had upheld the decision of the Income Tax Appellate Tribunal. The issue before the authorities was whether additional depreciation could be denied solely because the assessee had failed to submit Form 3AA together with the return of income.
The High Court had noted that additional depreciation had been disallowed on the ground that Form 3AA was not filed along with the return. However, it was an admitted position that Form 3AA had been submitted during the assessment proceedings. It was also undisputed that the assessee was otherwise entitled to claim additional depreciation.
In these circumstances, the High Court relied upon its earlier decision in Commissioner of Income Tax v. Shivanand Electronics, reported in (1994) 209 ITR 93 (Bom.), and found no merit in the Revenue’s appeal. Accordingly, the appeal before the High Court was dismissed without any order as to costs.
