IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.R. No.36 of 1998 Date of decision: October 31, 2006 The Commissioner of Income-tax, Ludhiana. -----Applicant Vs. M/s Kwality Cycles Pvt. Ltd., Ludhiana. -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MR JUSTICE RAJESH BINDAL Present: Mr. S.K. Garg Narwana, Advocate for the revenue. ----- ORDER: Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order passed in I.T.A. No.1596/Chandi/93 in respect of assessment year 1990-91:- “Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that for the purpose of calculating book profit u/s 115-J, depreciation is to be allowed as per the provision of Income-tax Act, 1961, instead of depreciation as allowable under the provisions of Companies Act?” In view of our judgment rendered in I.T.R. No.100 of 1999, The Commissioner of Income Tax, Ludhiana v. M/s Sona Woollen Mills (P) Limited, Ludhiana, the question referred is answered against the revenue and in favour of the assessee. ( ADARSH KUMAR GOEL ) JUDGE October 31, 2006 ( RAJESH BINDAL ) ashwani JUDGE