2017 (5) TMI 1052

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..... nufacturing is power- intensive, necessitating continuous power generation. For this purpose, the assessee had installed certain electrical sub-stations, towers etc. and other supporting equipment. These were an integral and critical part of its manufacturing process and cannot be compared with electrical fittings which have been defined in Note 5 to Appendix 1(E) & (G) which talks of electrical f .....

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..... ch was claimed by the assessee as depreciation, was not justified. The assessee in its return had claimed 15% depreciation on the electrical installations used for manufacturing activity. The Assessing Officer (AO) felt that the articles for which depreciation was claimed were essentially electrical installations and were part of its furnitures and fittings as clarified in the new Appendix I to .....

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..... , 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 Paints India Ltd. vs. CIT 266 ITR 99 by following the case of Bharat Earthmovers vs. CIT 245 ITR 428, CIT vs. Oswal Woollen Mills Ltd. 254 ITR 666, CIT vs. Oswal Woollen Mills Ltd. 257 ITR 737 and CIT vs. Starlight Silk Mills P. Ltd. .....

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..... 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. 7.2 In the background of the aforesaid discussions and respectfully following the precedents, as aforesaid which has been relied upon by the Ld. CIT(A) in his impugned order, we are of the considered v .....

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..... and critical part of its manufacturing process and cannot be compared with electrical fittings which have been defined in Note 5 to Appendix 1(E) (G) which talks of electrical fittings as including electrical wiring, switches, sockets, other fittings and fans etc. A clear demarcation, therefore, is essential; wherever electricity generation or continuous power supply is essential for the basic i .....

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