2016 (6) TMI 983

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..... AL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. In this tax appeal filed by the Revenue, following substantial question of law has been framed : "Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in allowing depreciation on moulds @ 30% as against 15% allowable on the moulds used for manufacturing electric and electronic goods .....

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..... e goods, the granules are converted converted into liquid form and are given definite shapes by using moulds and dyes. The plastic components are then assembled together to make switches and sockets. These switches and sockets are therefore, by very nature plastic products. Since some moulds are used in factory manufacturing plastic goods, higher rate of depreciation of 30% prescribed under subcla .....

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..... ance is extended to only those industries which are manufacturing exclusive plastic products as could be made out from the definition of plastic goods industries specified in the relevant appendix reflecting depreciation rates. In view of this position of fact, the claim of the assessee for considering depreciation allowance @ 30% on moulds and dies fail because it does not answer the description .....

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..... y decided the question of depreciation. CIT(Appeals) and the Tribunal therefore, committed an error. 6. On the other hand, learned counsel Shri Tushar Hemani for the assessee submitted that the assessee admittedly manufactured electric switches and sockets made exclusively from plastic. Moulds are therefore, used for manufacturing of plastic goods. He submitted that merely because later on electr .....

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..... er may be having plastic wires and circuits installed in such plastic switches and sockets, so as to make them functional, would not take away the basic character of the appliances being plastic goods. The assessee was exclusively involved in manufacturing such goods. Factory of the assessee was therefore, plastic goods factory. The moulds used for manufacturing such goods, therefore, qualify for .....

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