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TMI Blog2016 (7) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... e being disposed of by this common order for the sake of convenience. ITA No. 1590/Ahd/2013 Revenue's Appeal 3. The substantive grievance of the revenue read as under:- 1. (a) The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in allowing the depreciation of Rs. 50,64,819/- on Plant & machinery @60% instead of 15% allowed by the Assessing Officer. (b) The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts to ignore the fact that the said rate of depreciation is allowable only in respect of plant & machinery used in field operations by "Mineral Oil concerns and assessee was not a "Mineral Oil concerns." 4. Briefly stated, the assessee is engaged in the business o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is not eligible for claiming depredation @ 60%, as the assessee was engaged into providing services in relation to oil & gas and not involved into direct business. In this regards, we state that the assessee enters into contract with the parties who are into the business of exploration of oil & gas in field. On the basis of certification by the assessee, such parties use their assets for Oil & Gas exploration, without these, such companies cannot use the machines for exploration. For giving the certification, the assessee company uses certain machinery, which is used exclusively for the above purpose. Accordingly, we submit that the machineries used by the assessee are in relation to oil& gas exploration and eligible for claiming d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, all substantial question of law involved in the instant batch of appeals are decided in the favour of the assessee and against the revenue. Consequently, all the appeals are dismissed." Further, we submit that the assessee company claims the depredation for the previous year (c)15% as directed by the auditors of the assessee. company, however for the year under reference, the auditor was of the opinion that since the assessee in also engaged into the business of proving services to oil & gas related company, the assessee is also, eligible to claim the depreciation acclaimed by those companies. In addition to above, we submit that the purpose of providing higher depredation by the legislature was for the development of oil sector in Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) was of the opinion that the ratio of the decision of Hon'ble Delhi High Court given in the case of HLS India Limited 335 ITR 292 squarely apply on the facts of the present case and following the same. The ld. CIT(A) directed the A.O. to allow depreciation @ 60% thereby deleted the disallowance of Rs. 50,64,819/-. 8. Aggrieved by this, the revenue is before us. The ld. D.R. strongly relied upon the findings of the A.O. but could not bring any decision in favour of the revenue. The ld. counsel for the assessee reiterated what has been stated before the lower authorities. 9. We have given a thoughtful consideration to the orders of the authorities below. We find force in the contention of the ld. counsel that the impugned issues ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and per-foration equipment/tools which were used by the assessee were similar to the equipment/tools owned and used by mineral oil concerns. The assessee's wireline logging and perforation equipment was eligible for higher depreciation at 100 per cent, under clause (ii) of section 32(1) of the Act, read with item 111(3) (ix)(b) of the Schedule of the rates of depreciation in Appendix I to the Income-tax Rules, 1962. 10. Respectfully following the decision of the Hon'ble Delhi High Court (supra), we do not find any error or infirmity in the findings of the ld. CIT(A). Appeal filed by the revenue is accordingly dismissed. C.O. No. 187/Ahd/2013 for A.Y. 2009-10 11. The sole grievance of the assessee is that the ld. CIT(A) erred in conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has to make certain amount of deposit with the owners of the property. Further, we submit that the same cannot be treated as income of the assessee company, as it is not the receipt of the assessee company and the same has been made in relation to business of the assessee." 13. The A.O. rubbished the claim of the assessee by relying upon the provisions of section 36(2) of the Act and made the addition of Rs. 2,57,411/-. 14. Assessee carried the matter before the ld. CIT(A) and claimed that the said write off of Site Advances and Rent Deposits should be allowed as a business loss. The claim of the assessee did not find any favour with the ld. CIT(A) who confirmed the disallowances made by the A.O. 15. Aggrieved by this, the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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