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TMI Blog2014 (7) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... ee cannot be considered only as ‘Plant and Machinery’ which is a term distinct to such type of aircraft - aircraft as ‘aeroplane’ and granting depreciation to the respective assessees @ 40% - revenue has not been able to bring on record any of the cases wherein such aircraft has been considered by them eligible for depreciation under the head ‘Machinery and Plant’ - the AO had granted the depreciation to the assessee @ 40% in accordance with the provisions of the Rule - grant of depreciation cannot be considered to be a claim not supported by law, as the department cannot straightaway show that such claim of depreciation was not in accordance with the law and, in such, circumstances, the powers u/s 263 could not be invoked – Decided agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered the case laws relied upon both by the appellant as well as the A.O. At the very outset, it is clear from the schedule of depreciation that from 1.4.2009 the legislature has done away with the two different classifications of assets namely Aeroplanes-Aircraft, Aerial Photographic Apparatus and Aeroplanes- Aeroengines and now only one category of aircraft is mentioned which carries a depreciation rate of 40%. 7. Further, I find that the facts in the appellant s case are fully covered by the recent decision of the Jurisdictional High Court in the case of CIT Vs SRC Aviation P. Ltd. (ITA No. 487- 490/2012) (dated 3rd September 2012), wherein the Hon ble Court in detail after having discussed the decision of Kirlosker Oil Engines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des 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 views of the above discussion, this Court is satisfied that the Tribunal s judgment does not disclose any error as regards interpretation of Entry III(3)(i) of the Depreciation Rules. Its upholding the depreciation allowable in the present case to the tune of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by this Bench of the Tribunal vide aforesaid referred to order dated 26.4.2013 in assessee s own case wherein by following the earlier order of the ITAT Delhi G Bench in the case of CIT Vs SRC Aviation Pvt. Ltd. which has been affirmed by the Hon ble Jurisdictional High Court as reported in 2012-TIOL-724-HC-DEL-IT, the claim of the assessee was allowed and the relevant findings have been given in para 4 and 5 of the said order dated 26.4.2013 in ITA No. 2589 to 2591/Del/2012 for the assessment years 2006-07 to 2008-09 in assessee s own case which read as under: 4. The above order of the ITAT was challenged by the department before the Hon ble Jurisdictional High Court which upheld the same in ITA No. 487 to 490/2012 reported in 2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the course of original assessment proceedings, we are of the opinion that the A.O had granted the depreciation to the assessee @ 40% in accordance with the provisions of the Rule, therefore, such grant of depreciation cannot be considered to be a claim not supported by law, as the department cannot straightaway show that such claim of depreciation was not in accordance with the law and, in such, circumstances, the powers u/s 263 could not be invoked; This Court is conscious of the fact that the generic term aircraft is broader and there can be no doubt that it encompasses the expression aeroplane. However, this Court is not called upon to interpret the term aircraft in the present appeal. The question is whether the Beechcraft S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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