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TMI Blog2017 (5) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... Capital Bus Service Pvt. Limited case [1980 (2) TMI 69 - DELHI High Court] wherein held The allowances for normal depreciation does not depend upon the actual working of the machinery; it is sufficient if the machinery in question is employed by the assessee for the purposes of the business and for no other business and it is kept by him ready for actual use. Thus we hold that the order u/s 154 passed by the AO is not correct and allow the assessee s appeal. - ITA No. 1224/Hyd/2016 - - - Dated:- 12-5-2017 - Smt. Asha Vijayaraghavan, Judicial Member For Assessee : Shri S. Rama Rao For Revenue : Shri K.J. Rao, DR ORDER This is assessee s appeal for the A.Y 2003-04 against the order of the CIT (A)-4 Hyderabad dated 24. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery and transmission lines. 4. The CIT (A) held that the AO has rectified the mistake made in disallowing the depreciation and the CIT (A) dismissed the appeal confirming the order of the AO. 5. Aggrieved, the assessee is in appeal before us and raised the following grounds of appeal: 1. The order of the learned Commissioner of Income-Tax (Appeals) is erroneous both on facts and in law. 2. The learned Commissioner of Income-Tax (Appeals) erred in determining the appeal without providing proper opportunity. 3. The learned Commissioner of Income-Tax (Appeals) erred in confirming the order passed u/s 154 of the LT. Act without considering the fact that such issues cannot be considered while passing order u / s 154 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is mentioned that the Unit was shut down during the year as no water could be released into Srisailam Right Main Canal. The AO did not consider the explanation and therefore, observed that there is an error in the assessment order. 7. The Hon'ble Delhi High Court in the case of Capital Bus Service (P) Ltd vs. CIT reported in 123 ITR 404 held as follows: Held, that the expression used for the purpose of the business (used in s 10(2)(iv) r.w.s 10(2)(vi) of the I.T. Act, 1922) comprehended cases where the machinery was kept ready by the owner for its use in his business and the failure to use it actively in the business was not on account of its incapacity for being used for that purpose or its non-availability. And the language ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Your Directors regret to report that during the year under review, no water was released by the authorities from the Srisailam Reservoir due to the drought conditions and inadequate water levels. As a result, there were no operations of the power generating plants at Potireddipadu. SlI1CC the operations of the plant are entirely dependent on the release of waters, the circumstances were beyond the control of your Board. Due to the failure of monsoon this year and scant rainfall received in the catchment areas of the river Krishna, the Srisailam Reservoir did not receive any significant inflows of water into it. The water level in the reservoir was so low that no water could be released into Srisailam Right Main Canal this entire seaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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