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Issues:
1. Depreciation claim on steel shuttering plates and tubular scaffoldings. 2. Grant of investment allowance and relief under section 80J. Detailed Analysis: 1. Depreciation Claim: The assessee claimed 100% depreciation on steel shuttering plates and tubular scaffoldings under section 32(1)(ii) of the IT Act, 1961, as each item's cost was below Rs. 750. However, the ITO allowed depreciation at 15% only, considering the items as part of the plant and machinery. The CIT (A) upheld this view without providing any reasons. The main contention was whether individual items of shuttering and scaffolding qualify as plant. The tribunal observed that the individual items, required in the erection of shuttering, do qualify as plant based on the degree of durability and their function in the assessee's business. Referring to a previous judgment, the tribunal concluded that the assessee was entitled to 100% depreciation on each individual item costing less than Rs. 750. Therefore, the tribunal directed the ITO to allow depreciation at 100% on the said items. 2. Grant of Investment Allowance and Relief under Section 80J: The authorities below rejected the assessee's claim for investment allowance and relief under section 80J on the grounds that the assessee was not considered an industrial undertaking. Citing a judgment of the Delhi High Court in a similar case, it was held that a private company engaged in construction activities does not qualify as an industrial undertaking since its primary activity is building construction, not manufacturing goods. Consequently, the tribunal upheld the decision to deny the investment allowance and relief under section 80J to the assessee. In conclusion, the tribunal partly allowed the appeal by granting 100% depreciation on steel shuttering plates and tubular scaffoldings while upholding the denial of investment allowance and relief under section 80J due to the nature of the assessee's business not meeting the criteria of an industrial undertaking.
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