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TMI Blog2017 (1) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant : Manish Misra For the Respondent : Pradeep Agrawal ORDER 1. Heard Sri Manish Misra, learned counsel for appellant and Sri Pradeep Agrawal, Advocate for respondent. 2. This appeal under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as the Act, 1961 ) has arisen from judgment and order dated 30.04.2015 passed by Income Tax Appellate Tribunal, Lucknow Bench ''A', Lucknow (hereinafter referred to as the Tribunal ) in ITA No. 157/LKW/2014. It relates to Assessment Year 2010-11 3. The disputes relates to question, whether shuttering be treated to be part of plant and will be entitled for 100% deduction or less than that. 4. Sri Manish Misra, learned counsel appearing for Revenue submitted that under Section 32(1) of Act, 1961 all the depreciations are provided and it reads as under: 32. Depreciation.--(1) In respect of depreciation of-- (i) buildings, machinery, plant or furniture, being tangible assets; (ii) know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;heavy goods vehicle', heavy passenger motor vehicle , light motor vehicle , medium goods vehicle and medium passenger motor vehicle maxi-cab , motor-cab , tractor and road-roller shall have the meanings respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988): Provided also that, in respect of the previous year relevant to the assessment year commencing on the 1st day of April, 1991, the deduction in relation to any block of assets under this clause shall, in the case of a company, be restricted to seventy- five per cent of the amount calculated at the percentage, on the written down value of such assets, prescribed under this Act immediately before the commencement of the Taxation Laws (Amendment) Act, 1991: Provided also that the aggregate deduction, in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets or know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the predecessor and the successor in the case of succession referred to in clause (xiii), clause (xiiib) and claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing or in the business of generation or general and distribution of power, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii): Provided further that no deduction shall be allowed in respect of- (A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (C) any office appliances or road transport vehicles; or (D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head Profits and gains of business or profession of any one previous year. (iii) in the case of any building, machinery, plant or furniture in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under clause (ii) of sub- section (1) of section 32 in respect of depreciation of any block of assets shall be calculated at the percentages specified in the second column of the Table in Appendix I to these rules on the written down value of such block of assets as are used for the purposes of the business or profession of the assessee at any time during the previous year. (1A) The allowance under clause (i) of sub-section (1) of section 32 of the Act in respect of depreciation of assets acquired on or after 1st day of April, 1997 shall be calculated at the percentage specified in the second column of the Table in Appendix IA of these rules on the actual cost thereof to the assessee as are used for the purposes of the business of the assessee at any time during the previous year : Provided that the aggregate depreciation allowed in respect of any asset for different assessment years shall not exceed the actual cost of the said asset: Provided further that the undertaking specified in clause (i) of sub-section (1) of section 32 of the Act may, instead of the depreciation specified in Appendix IA, at its option, be allowed depreciation under sub-rule (1) read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hedule to the Act. Explanation : For the purposes of this sub-rule,-- (a) laboratory financed by the Government means a laboratory owned by any body including a society registered under the Societies Registration Act, 1860 (21 of 1860), and financed wholly or mainly by the Government ; (b) public sector company means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; and (c) University means a University established or incorporated by or under a Central, State or Provincial Act and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a University for the purposes of that Act. 6. Appendix 1 referred to in Rule 5 was substituted by Income Tax (Sixth Amendment) Rules, 2005 w.e.f. 02.04.2005 and effective from Assessment Year 2006-07. It provides in Clause III depreciation at the rate of 15% in respect of machinery and plant and other than those covered by sub-items (2), (3) and (8) below. Learned counsel for Revenue submitted that in view of aforesaid amendment depreciation only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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