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TMI Blog2010 (3) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Therefore, expenses on account of electricity and power have been rightly allowed, even otherwise payments in respect of electricity and power have been made in accordance with the electricity/ power bills raised by the Electricity Board, appeal dismissed - IT Appeal No. 15 of 2010 - - - Dated:- 17-3-2010 - M.M. Kumar and Jitendra Chauhan, JJ. Ms. Urvashi Duggal for the Appellant. JUDGMENT M.M. Kumar, J. The Revenue is in appeal by invoking Section 260-A of the Income Tax Act, 1961 (for brevity 'the Act') and has challenged order dated 29.06.2009 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B' (for brevity 'the Tribunal) in I.T.A. No. 712/Chandi/2008 for assessment year 2005-06. It has been claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, Assessing Officer allowed the depreciation only for a sum of Rs. 4,50,182/-. After noticing that the assessee-respondent did not carry on any manufacturing activities and the machinery had not been used during the assessment year. The balance depreciation allowance of Rs. 6,71,470/- was added back to the taxable income of the assessee-respondent. On the other question of incurring expenditure on electricity and power etc. assessee-respondent had claimed a sum of Rs. 21,62,334/-. However, Assessing Officer disallowed 75% of the expenditure which amounted to Rs. 16,21,750/- and the same was added back to the total income of assessee-respondent. 3. On an appeal filed by the assessee-respondent, CIT(A) upheld disallowance on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le from para 5 of its order which reads as under: "In our view, in principle, the stand of the assessee deserves to be upheld more so when it is in line with the law laid down by the Hon'ble Jurisdictional High Court in the case of Nahar Exports Ltd. ( supra ). So however, in order to appreciate the factual matrix we deem it fit and proper to restore the issue to the file of the Assessing Officer. Before the Assessing Officer, the assessee shall report its plea that the plant and machinery and other assets on which depreciation amounting to Rs. 6,71,470/- has been declined by the Assessing Officer was kept ready for use. Needless to say, if the Assessing Officer is satisfied that such assets have been kept ready for use and could not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered view that the question is covered by judgment of this Court rendered in Nahar Exports Ltd. ( supra ). Therefore, for the purpose of the instant case it has to be taken as well settled that the plant and machinery if it has been kept ready for manufacturing activities during the assessment year under consideration then depreciation has to be allowed irrespective of the fact whether manufacturing activities were undertaken or not. It has come on record that the assessee-respondent has incurred expenses on repair and maintenance which have been allowed by the Assessing Officer. Therefore, we do not find any question of law much less a substantive question of law for determination of this Court on that count. 7. The other questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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