A scheme of arrangement had been sanctioned by this Court in respect of the Petitioner, viz., . Ponni Sugars (Erode) Limited, with a specific provision entitling it to claim depreciation in its tax returns on the basis of fair market value of fixed assets as on 01.04.1999. The AO disallowed depreciation for AY 2003-04. It was held that there is no justification to deny the Petitioner of the same benefit for the assessment year 2003-2004, which has been granted for the assessment years 2001-2002, 2002-2003, 2004-2005, 2005-2006 and 2006-2007. Matter remanded for fresh consideration, reasonable opportunity for hearing and a reasoned order on merit. (AY. 2003 -04 )