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TMI Blog2014 (5) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... im for higher depreciation. The Assessing Officer while completing the assessment under section 143(3) of the Act disallowed higher depreciation of Rs. 1,06,98,568/-claimed on the windmills installed during the assessment years 2000-01 and 2004-05 on the ground that the assessee filed return for the assessment year 2004-05 belatedly and the assessee did not exercise option of claiming higher depreciation as per Rule 5(1A) of the Income-tax Rules. On appeal, the Commissioner of Income Tax (Appeals) insofar as higher depreciation on windmills installed in the assessment year 2000-01 is concerned, allowed the claim of the assessee holding that the option exercising for higher depreciation has been made by the assessee in the initial assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the assessee submits that almost similar situation has been considered by the co-ordinate Bench of this Tribunal in the case of KKSK Leather Processors (P.) Ltd. v. ITO [2010] 126 ITD 215 (Chennai). Referring to the said decision, the counsel submits that this Tribunal has held that filing of audit report within the due date amounts to exercising option as required under the second proviso to Rule 5(1A) of Income-tax Rules for claiming higher depreciation. The counsel submits that in the case of the assessee before the due date for filing of return, assessee filed the audit report wherein he has claimed higher depreciation and this amounts to exercising option for higher depreciation as provided under Rule 5(1A). Therefore counsel su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2004-05. The second proviso to Rule 5(1A) prescribes that the assessee should exercise option before the due date for filing of return for claiming higher depreciation. The counsel for the assessee submits that the assessee has filed audit report before the due date for filing of return claiming higher rate of depreciation on the windmills. Following the order of the co-ordinate Bench of this Tribunal cited above, we hold that exercising option by filing audit report before the due date for filing of return for claiming higher depreciation on the windmills, the assessee is entitled for higher depreciation even though the return was filed belatedly. However, we direct the Assessing Officer to verify whether the audit report in Form 3CB an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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