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TMI Blog2014 (9) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... o, it cannot be subjected to any test including the one stipulated under third proviso – Decided against revenue. - I.T.T.A.Nos.8 of 2002 - - - Dated:- 23-7-2014 - L. Narasimha Reddy And Challa Kodanda Ram,JJ. For the Appellant : Sri J. V. Prasad For the Respondent : Sri Ch. Pushyam Kiran ORDER (Per the Honble Sri Justice L. Narasimha Reddy) Common questions of fact and law arise in these two appeals. Hence, they are disposed of through a common judgment. The respondents are agencies involved in the supply of gas cylinders and allied activity. As part of their business, they have purchased cylinders of various descriptions. They fill gas in them and distribute to the customers. In the returns submitted by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is nothing in the first proviso to suggest that any article purchased by an assessee at a cost of ₹ 5,000/- or less, cannot be subjected to the test under third proviso. Other contentions are also urged. Sri Ch.Pushyam Kiran, learned counsel for the respondent, on the other hand, submits that once an article acquired by an assessee is covered by the first proviso, the question of subjecting it to third proviso does not arise. According to the learned counsel, if the value of an item is less than ₹ 5,000/-, the extent of duration of its use becomes totally irrelevant. The entire controversy revolves around the question as to whether the cylinders purchased by the respondents must be dealt with under the first or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tual cost thereon shall be allowed as deduction in the form of depreciation. Such allowance is not subject to any other conditions or stipulations. Third proviso, however, stipulates certain conditions. If the article or item which formed block of assets has been put to use for a period of less than 180 days, the deduction shall be restricted to 50% of the cost thereof. The fact that the cost of the item is not mentioned in the third proviso gave rise to some doubt on the part of the Assessing Authority as well as the Commissioner. They felt that there is nothing in third proviso to suggest that an item, which is otherwise covered by the first proviso, cannot be subjected to the test of the extent of use. However, on close analysis of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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