M/S. WILH, WILHELMSEN versus COMMISSIONER OF INCOME TAX, WEST BENGAL-I

Instructions regarding depreciation limits and allocation on ships are consistent with Rule 33 and Section 10(2)(vi), thus binding; depreciation allowance not permitted for ships older than twenty years or for ships not employed in Indian trade in the relevant year.

Parties: Appellant Assessee: M/S. Wilh, Wilhelmsen; Respondent Revenue: Commissioner of Income Tax, West Bengal-I
Jurisdiction: India
Judgment Date: 09 June 1996
Procedural Posture: Civil Appeal / Supreme Court Final Decision
Outcome: Appeal dismissed
Legal Topics: Depreciation on Ships, Unabsorbed Depreciation, Binding Nature of Central Board Instructions, Section 10(2)(vi) of Income Tax Act, 1922, Rule 33 of Income Tax Rules

Income Tax Depreciation on Ships Unabsorbed Depreciation Binding Nature of Central Board Instructions Section 10(2)(vi) of Income Tax Act, 1922 Rule 33 of Income Tax Rules, 1922

Case Brief

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Full judgment text Legal principles 2 Authorities cited 9 Party arguments 2 Amounts and remedies 3

Parties

M/S. Wilh, Wilhelmsen

Appellant Assessee

Commissioner of Income Tax, West Bengal-I

Respondent Revenue

Procedural Posture

Civil Appeal / Supreme Court Final Decision

Legal Issues

1 Whether depreciation allowance under Rule 8 and Section 10(2)(vi) can be claimed for ships more than twenty years old
2 Validity and binding nature of Instructions issued by Central Board of Revenue under Rule 33 regarding depreciation
3 Whether unabsorbed depreciation for certain ships can be set-off when those ships did not operate in India in the relevant year

Ratio Decidendi

Court Disposition

Appeal dismissed

Orders

Affirmed High Court's answers to Questions 1 and 3, against assessee and in favour of Revenue.
Advocate's fee Rupees ten thousand consolidated.