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Issues involved: Appeal filed by Revenue against order of C.I.T.(Appeals) u/s 154 of the I.T. Act, 1961 regarding depreciation on Vapour Absorption Machine.
Summary: 1. The appeal and cross-objection were filed against the order of the C.I.T.(Appeals)-V at Chennai u/s 154 of the I.T. Act, 1961 for the assessment year 2000-01. 2. The assessing authority initially allowed depreciation at 100% on Vapour Absorption Machine, later modified it to 25% u/s 154. 3. Grounds taken by the assessee in appeal were lack of jurisdiction u/s 154 and entitlement for 100% depreciation on the machine as an energy saving device. 4. C.I.T.(Appeals) upheld the jurisdiction of the Assessing Officer u/s 154 and allowed 100% depreciation on the machine as an energy saving device. 5. Revenue appealed against the decision on depreciation, while the assessee cross-objected on the jurisdiction issue. 6. After hearing both parties, the delay in filing cross-objection was condoned, and it was admitted for hearing. 7. The machine's classification as an energy saving device was deemed debatable, requiring detailed examination not suitable for rectification u/s 154. 8. It was concluded that the assessing authority lacked jurisdiction to modify the depreciation allowance u/s 154, and the order was not sustainable in law. 9. The cross-objection filed by the assessee was allowed, leading to the dismissal of the Revenue's appeal. 10. The appeal by the Revenue was dismissed, and the cross-objection by the assessee was allowed. Judgment delivered by: DR. O.K. NARAYANAN ; VP
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