2002 (2) TMI 34 - HC - Income Tax

Whether on the facts and in the circumstances of the case the Income tax Appellate Tribunal was justified in law in holding that generator set falls within the category defined in clause (xiii) of item (10A) of Appendix I of the Income-tax Rules 1962 and as such is eligible for depreciation at the rate of 30 per cent.? - in our view electric generator clearly falls under renewable energy devices and the Income-tax Appellate Tribunal has rightly allowed the depreciation at the rate of 30 per cent. on the basis of item (10A) clause (xiii) of Appendix I to the Income-tax Rules 1962. The reference is answered in favour of the assessee and against the Revenue.

Summary

The High Court of Rajasthan ruled in favor of the assessee regarding the eligibility for depreciation on a generator set under item (10A) of the Income-tax Rules, 1962. The court held that the generator set falls under renewable energy devices and is eligible for a depreciation rate of 30 per cent. The Income-tax Appellate Tribunal's decision was upheld.