JUDGMENT

MUHAMMAD MUJEEBULLAH SIDDIQUI, J.-The above appeal was admitted to regular hearing to consider the following questions of law:---"(1) Whether on the facts and in the circumstances of this case the learned Income Tax Appellate Tribunal was justified in holding that after completion of period of lax holiday the depreciation for assessment year from which the post tax holiday period commences, is to be allowed at the actual cost of plant, machinery and building and not on Written Down Value?(2) Whether on the facts and in the circumstances of this case the learned Income Tax Appellate Tribunal was justified in holding that depreciation allowed as per depreciation schedule during the period of tax holiday is of no significance even in presence of huge wear and tear caused to the plant, machinery and building, and in the presence of rule 1(3A) of the IIIrd Schedule?The relevant facts giving rise to the above questions of law are that the respondent is a public limited company deriving incom...