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TMI Blog1983 (9) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... isputes and they are, therefore, disposed of by this single order. 2. The first ground in both these appeals relates to the assessee's claim for depreciation. The assessee is running a cold storage and the ITO granted depreciation at 5 per cent on the building and 10 per cent on the machinery. Before the AAC the assessee disputed the rate at which the same should have been allowed and its argume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . According to the AAC no part of the plant and machinery used in a cold storage for storing potatoes and similar things could have refrigeration plant containers and as such the case of the assessee would not be covered by sub-item No. 13 at all. The AAC was of the opinion that the assessee's case was covered by sub-item Nos. 2 and 7, namely, air-conditioning machinery and machinery and plant com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation. In support of its claim, its representative referred to a judgment of the Allahabad High Court in CIT v. Kanodia Cold Storage [1975] 100 ITR 155 wherein the definition of plant in section 43(3) of the Income-tax, 1961 (' the Act ') was held to include things normally included therein and a building with insulated walls used as a freezing chamber was held to be part of the air-conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the plant containers were sought to be considered for higher rate of depreciation under this sub-item and not the refrigeration plant itself but this appears to be a slip on the part of the Legislature because in the Schedule, as originally framed, there was a comma after the words ' refrigeration plant '. Though that has been omitted in the subsequent years, it is obvious that the Legislature d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. We, therefore, direct that the ITO shall reconsider the assessee's claim in the light of our aforesaid observations and the observations of the AAC to the contrary should be deemed to have been set aside. The claim of the assessee would be admissible under sub-item No. 13, and not only under sub-item Nos. 2 and 7. 3 to 6. [These paras are not reproduced here as they involve minor issues.] - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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