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TMI Blog2016 (1) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer during the course of assessment noticed that the assessee has purchased certain hydraulic machines as on 30.3.2005. These machines were dispatched from Jalandhar and delivered to the assessee as on 31.3.2005, which is evident from octroi slip. The Assessing Officer asked the assessee to furnish the manual of these machines and show any evidence to prove that these machines had been put to use. The assessee submitted that these machines were ready to use plug in computerized machines and, therefore, installed on same day as per copy of installation bill already filed with the Assessing Officer. The assessee claimed that even if the machinery is ready to put to use condition, actual use of machinery was not necessary for allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chines purchased were dispatched from Jalandhar on 30.3.2005 and reached to the assessee on 31.3.2005, which is evident from octroi slip. The copies of purchase bills, installation bills and certificate of Chartered Accountant regarding the installation were also filed, which proves that the machinery was installed on 31.3.2005. The existence of these documents were never denied by the Assessing Officer and the Assessing Officer was not correct in assuming and holding that there is always a need to conduct trial run before the machinery is put to actual use for commercial production. Reliance was placed on a number of judgments and prayer was made to delete the disallowance. 4. After considering the submissions of the assessee, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of machines to get ready for use within one day has made the disallowance. 6. The learned D.R. relied on the orders of the lower authorities. 7. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The undisputed facts are that the machines were delivered at the premise of the assessee as on 31.3.2005, which is evident from the orcroi slip and this fact has not been disputed even by the Assessing Officer. The assessee has produced copies of bill, installation bills and certificate of Chartered Accountant regarding installation and were filed before the Assessing Officer. The Assessing Officer has not been able to find out any discr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the depreciation on the said machines as per law. 8. The next issue is with regard to the action of the Assessing Officer in allowing depreciation @ 15% on electrical installation as against 25% claimed by the assessee. During the assessment proceedings, the Assessing Officer noted that the assessee has claimed depreciation @ 25% on certain electrical installations. The explanation of the assessee was that these electrical installations are an integral part of plant & machinery, hence depreciation @ 25% was claimed. Reliance was placed on a number of judgments in this regard. The Assessing Officer distinguishing these case laws, made the disallowance. 9. Before the learned CIT (Appeals), it was submitted that depreciation claimed on ele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the claim of the assessee that these electrical installations were a part of the plant & machinery, was not properly examined at any stage neither before the Assessing Officer nor before the learned CIT (Appeals). We think it fit to send the matter back to the file of the Assessing Officer to verify whether these installations are part of plant & machinery or not. The assessee is free to adduce any evidence which it deems fit on this issue and the Assessing Officer is hereby directed to give a clear finding whether these installations are part of the plant & machinery. If it is so, depreciation @ 25% is to be allowed, otherwise depreciation only to the extent of 15% is to be allowed. 13. In the result, the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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