2012 (9) TMI 1199 - AT - Income Tax

Summary

Issues involved: Appeal against order of ld. CIT(A)-IV, Baroda regarding deletion of addition of depreciation on moulds @ 40% instead of 25% for manufacturing electric and electronic goods.

Summary:

Issue 1: Depreciation rate on moulds
The Assessing Officer restricted depreciation on moulds to 25% for the assessee engaged in manufacturing electrical and electronic items, not rubber and plastic goods. The ld. CIT(A) deleted the addition based on a previous Tribunal decision allowing higher depreciation at 40% for moulds used in manufacturing plastic goods. The Tribunal upheld the ld. CIT(A)'s decision, citing relevant case law and directing recomputation of depreciation at 40%.

Conclusion:
The Tribunal dismissed the Revenue's appeals, upholding the deletion of the addition and allowing higher depreciation at 40% for moulds used in manufacturing plastic goods.