COMMISSIONER OF INCOME TAX vs MAHENDRA MILLS

The Supreme Court addressed whether the Income-tax Officer could grant depreciation allowance under Section 32 of the Income-tax Act, 1961, when not claimed by the assessee. The Court held that the Tribunal was correct in affirming the right of the assessee to claim depreciation, emphasizing that the amendment to Section 32 by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, does not affect pending assessments prior to 1.4.1988. The ruling clarifies the interpretation of depreciation claims in light of varying High Court decisions.