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TMI Blog2016 (9) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... te that Ld. CIT(A) was justified in holding that as a natural corollary, additional depreciation amounting to ₹ 1,02,12,533/- is also required to be allowed as the Assessing Officer disallowed the same considering electrical installations as part of furniture and fixture, which does not need any interference. - Decided against revenue - ITA No. 4559/Del/2010 - - - Dated:- 9-8-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADI N. MISHRA, ACCOUNTANT MEMBER For The Department : Sh. UC Dubey, Sr. DR For The Assessee : S h . V.K. Tulsiyan, CA ORDER PER H.S. SIDHU : JM The Revenue has filed the present appeal against the impugned order dated 08/7/2010 passed by the Ld. Commissioner of Income Tax (Appeals)-XV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances of the case, the Ld. CIT(A) has erred in ignoring the fact that as per IT Rules there is no block of assets in the name of 'electrical fittings' but the block applicable to electrical item is 'Furniture Fittings' which also includes electrical items and the applicable rate of depreciation is 10%. 6. The appellant craves to be allowed to add any fresh grounds of appeal and/or delete or amend any of the grounds of appeal. 2. The facts in brief are that the assessee company is engaged in the business of manufacturing and selling of Sponge Iron, Billets, Wire Rod, Oxygen Gas and generation of power and has filed its ereturn declaring an income of ₹ 3,51,07,010/- on 25-1-2006. Thereafter physical return wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue may be allowed. 6. On the contrary, Ld. Counsel of the Assessee has relied upon the order of the Ld. CIT(A) and stated that he has passed a well reasoned order which does not need any interference, hence, the same may be upheld. 7. We have heard both the parties and perused the records, especially the impugned order passed by the Ld. CIT(A). We find that Ld. First Appellate Authority has elaborately discussed the issue in dispute by considering the submissions of the assessee and adjudicated the issue vide para no. 3.0 to 3.2 of the impugned order. For the sake of convenience, we are reproducing para no. 3.0 to 3.2 of the impugned order as under:- 3.0 Ground No.2 relates to treating electrical installation as furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for power supply to the plant as well as for distribution of power between sub-stations. Control panels are used to control and regulate the flow of electricity into manufacturing and static converter system (panels) is used for an uninterruptible electrical power supply to the manufacturing process. But, without appreciating the nature and application of electrical installation items, the assessing officer has held that electrical installations are in the nature of electrical fittings and should be added to the block furniture and fittings and disallowed the claim of higher depreciation. In support of above, the learned AR referred to the Gujarat High Court judgment in the case of CIT vs. Starlight Silk Mills P. Ltd. [2006] 280 ITR 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery used for manufacturing steel and as the assessing officer has not controverted the contentions of the appellant company hence, I direct the assessing officer to allow depreciation on electrical installations @ 15% i.e. the rate applicable to 'plant machinery'. As a natural corollary, additional depreciation amounting to ₹ 1,02,12,533/- is also required to be allowed as the assessing officer disallowed the same considering electrical installations as part of furniture and fixture. 7.1 After going through the findings of the Ld. CIT(A), as aforesaid, in our considered view, on the anvil of the decision in the case of CIT vs. Oswal Woollen Mills Ltd. (supra), the Punjab and Haryana High Court applied Berger Paint ..... X X X X Extracts X X X X X X X X Extracts X X X X
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