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TMI Blog2010 (7) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the disallowance on account of depreciation on electric fittings amounting to ₹ 1,04,679/- while observing that there is specific provision of allowing depreciation @ 15% on electric fittings. 2. The brief facts of the case are that the assessee claimed depreciation on electrical fittings @ 25%. According to the Learned Assessing Officer the depreciation rate provided in the Income tax Act on electric fittings is 15%. Therefore, the Learned Assessing Officer disallowed excess depreciation of ₹ 1,04,679/- claimed by the assessee. 3. On appeal the Ld Learned Commissioner of Income Tax(Appeals) observed that the assessee claimed depreciation onelecrcal fittings @ 25% by fitting it as a part of plant and machinery whereas t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Before us the Learned Authorised Representative of the assessee contended that the electrical fittings which were used by it for its business purposes were part and parcel of the Plant machinery and they were used alongwith the Plant Machinery and being part of the Plant Machinery depreciation thereon was allowable @ 25% and not @ 15%. We find that the lower authorities have decided the issue by merely looking at the nomenclature given to the Asset without verifying the actual details of the Asset and the nature of the Assets. In our considered opinion the electrical fittings which forms integral part of the Plant Machinery and those electrical fittings which are used alongwith the Plant machinery and cannot be used separately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital in nature. 7. The brief facts of the case are that the assessee claimed filteration expenses of ₹ 5,13,901/- on purchase of various goods as revenue expenditure. The Learned Assessing Officer treated the same as capital expenditure on the ground that the assessee has treated the goods as capital by debiting the cenvat credit available on purchase of such goods to the RG-23C Part-II register and allowed depreciation thereon @ 25% and thereby made a disallowance of ₹ 3,85,426/-. 8. On appeal, the Learned Commissioner of Income Tax(Appeals) confirmed the action of the Learned Assessing Officer. 9. The Learned Authorised Representative of the assessee filed before us copy of order of the Tribunal dated 11-6-2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bles do not give rise to any enduring benefit but are of the nature of day to day use and keeping the capacity or maintaining already existing plant functioning to the standard required for manufacturing and production of pharma drugs. Ld.CIT(A) enclosed along with the order the list of items which were consumed under the head filtration expenses. 8. We have heard the Ld. DR and the Ld. Learned Authorised Representative of the assessee. In our considered view there is no case for interference in the order of Ld. Learned Commissioner of Income Tax(Appeals). For the reasons mentioned in his order and on perusal of goods and sample used under the head filtration expenses, we are satisfied that they are the day to day consumables and do not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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