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TMI Blog2012 (9) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ling the appeals is condoned. The applications stand disposed of. ITA Nos.487/2012, 488/2012, 489/2012 and 490/2012 1. The appellant claims to be aggrieved by an order dated 26.8.2011 in appeal Nos. 2215/Del/2010, 1557/Del/2010, 1558/Del/2010 and 3824/Del/2010. Three appeals had been preferred by the SRC Aviation Private Limited and one appeal by CDIT. 2. The following questions are sought to be urged, i.e., 1. Whether the deletion of disallowance under Section 14A was justified? 2. Whether the depreciation deductible under the head " Plant & Machinery ", particularly the relevant entry "Aeroplane-Aeroengines" prescribing 40% depreciation was applicable and justifiably applied by the Tribunal and the Commissioner(Appeals) in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aft, aerial photographic apparatus (NESA) - 30% E(1) Aeroplanes-Aero engines (NESA)". - 40% However, with effect from 1.4.1988, the relevant entry reads as follows: 3(i):"Aeroplane-Aeroengines" - 40% 6. It was urged that the deletion of the expression "aircraft" is a significant change which entitled the assessee in this case to claim larger depreciation of 40% for the acquisition of its "Beechcraft Super King Air B-200C‟. Learned counsel also placed reliance on the Aircraft Act, 1934 and a decision of the Bombay High Court in CIT Vs. Kirlosker Oil Engines (1998) 230 ITR 88 (Bom). 7. The relevant discussion of the Tribunal on this score is as follows: "11. We have carefully considered the rival submissions in the light of the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are quite different and distinct. That both the items are given under the heading "aeroplanes.‟ Item D(1) described the rates of depreciation on "aircraft and aerial photographic apparatus‟, whereas the Item E(1) describe the rate of depreciation of aero engines. As the assessee was admittedly claiming depreciation on aircraft, it was held that it will fall under item D(1) which have specific one and, therefore, the assessee will be entitled for depreciation @ 30% and the depreciation @ 40% is applicable only on aero engines and the aero engines is not covered under aircrafts. But the position under the Appendix-I which is applicable in the case of the assessee is different. In the present case, there is no such classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or free, airships, kites, gliders and flying machines." 16.1. Further, Encyclopedia Britannica (Macropaedia) Vol. I describe the "aircraft‟ in broad two categories which are defined as under:- " All aircraft fall into two general categories - lighter-than- air or hearvier-than-air. Several distinct types are recognized within each group. Each may perform a variety of missions calling for modifications for special usage. Lighter-than-air craft rise and float because they displace a volume of air the weight of which is equal to or greater than the total weight of the aircraft. Such aircraft include balloons and airships. Heavier-than-air craft derive their flight capability (lift) form the dynamic reaction of air flowing around su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ft. Though technical details have not been furnished before us, but, it is clear from the picture submitted to us that the aircraft owned by the assessee has fixed wings and has the characteristics of the aeroplane though it may be of a smaller capacity which is able to fly only nine passengers on board. But, for that reason the aircraft owned by the assessee cannot be thrown out of the category of "aeroplane‟and the aircraft owned by the assessee cannot be considered only as "Plant and Manchinery‟which is a term distinct to such type of aircraft. 18. Further, it has been demonstrated by the learned AR of the assessee that in many cases the department is considering such aircraft as "aeroplane‟and granting depreciation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no warrant for such a restrictive interpretation. Even with regard to the history of the entry all that can be inferred is that "aircraft" is a broader description which includes all manner of craft or means of transport aided by flight, (such as balloons, planes etc.) within the Depreciation Rule. For the reasons best known, the rule making authority confined and narrowed definition to "aeroplane". This conclusion is also supported by the fact that other entries in Rule III(3) of the depreciation table extend to entire vehicles such as commercially pliable buses, cars etc. They do not confine the scope of depreciation only to parts of such vehicles. 10. In view of the above discussion, this Court is satisfied that the Tribunal‟s jud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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