Commissioner Of Income Tax, Patiala v. Chandigarh Bottling Co., Chandigarh

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. ITR No.213of 1999 Date of decision: 30.9.2010 Commissioner of Income tax, Patiala -----Petitioner Vs. Chandigarh Bottling Co., Chandigarh ----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOELHON’BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Ms. Urvashi Dhugga, Advocate for the revenue.--- Adarsh Kumar Goel,J. Following questions of law have been referred for opinionof this Court by the Income Tax Appellate Tribunal, Chandigarh,arising out of its order dated 9.1.1992 in ITA No.230 of 1987 for theassessment year 1978-79:- “1. Whether on the facts and in the circumstances of thecase, the Appellate Tribunal was right in law in upholdingthe findings of CIT(A) that the new empty bottles of theassessee were a plant and therefore depreciation @ 100% isallowable on the new empty bottles purchased during theyear since the value of each bottle is less than Rs.750/-? 2. Whether on the facts and in the circumstances of thecase, the Appellate Tribunal was right in law and on factsin allowing 15% depreciation on old empty bottles/shells? It is not disputed that in the case of the assessee itself, thisCourt has dealt with the issue involved in Question Nos. 1 and 2 in ITANo.6 of 2001 (The commissioner of Income Tax, Chandigarh v. M/sChandigarh Bottling Co. Chandigarh) decided on 20.11.2007 andheld that bottles used by soft drinks manufacturer constitute plant and100% depreciation is allowed thereon if value of each bottle is less thanRs.750/-. Accordingly, the said questions are answered against therevenue and in favour of the assessee. The reference is disposed of. (Adarsh Kumar Goel) Judge September 30, 2010‘gs’ (Ajay Kumar Mittal) Judge