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TMI Blog2018 (5) TMI 1685X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be determined as per section 43(6)(b) - matter is restored to the file of AO for fresh adjudication giving the assessee an opportunity to determine the opening W.D.V. of rolls in accordance with section 43(6)(b) - Decided in favour of revenue for statistical purpose. - I.T.A. No. 333/Kol/2018 - - - Dated:- 18-5-2018 - Shri P.M. Jagtap, AM For The Revenue : Shri P.K. Mondal, Addl. CIT For The Assessee : Shri Naresh Kumar Goyal, Advocate ORDER PER P.M. JAGTAP, AM This appeal is preferred by the revenue against the order of Ld. CIT(Appeals) 1, Kolkata dated 29.11.2017 and the solitary issue involved therein relates to the deletion by the Ld. CIT(A) of the addition of ₹ 1,07,65,892/- made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the assessee: The assessee company during the year under consideration has provided depreciation on Rolling Mill Rolls on the basis of written down value method on pro-rata basis at the rate of 13.91% as prescribed in schedule XIV to the Companies Act, 1961 and claimed depreciation on Rolling Mill Rolls as per section 32(1) of the Income Tax Act, 1961 read with rule 5 of the Income Tax Rules 1962 at the rate of 80% as provided in new appendix I (effective from assessment year 2006-07 onward). Whereas in the earlier years the depreciation on Rolling Mill Rolls was claimed at the rate of 15% under the block machinery and plant. The same was also considered in the Tax Audit Report for the year under consideration. 4. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calculated in proportion the W.D.V. (as per Companies Act, 1956) of Rolls ₹ 1,78,73,644/- to Plant Machinery inclusive of Rolls amounting to ₹ 4,49,17,127/- as duly disclosed in Note-7 (Fixed Assets) of Audited Accounts of the Company as on 31.03.2012. The A/R has submitted That- That the Appellant Company for the year under consideration bifurcated the W.D.V. as on 31.03.2011 of Plant Machinery 15% of Rs, 4,03,98,509/- into ₹ 2,38,35,599/- and ₹ 1,65,62,910/- as W.D.V, of Plant Machinery 15% and Plant Machinery (Rolls) 80% respectively in proportion the Net Block amount as per Companies Act, 1956 as on 31.03.2011 of Rolls ₹ 1,78,73,644/- bears to total amount of Plant Machinery inclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O is directed to allow depreciation at the prescribed rate of 80% on the W.D.V of Rolls in accordance with Appendix I w.e.f. A.Y 2006-07 and Rule 5 of the I.T. Rules, 1962. Aggrieved by the order of the Ld. CIT(A), the revenue has preferred this appeal before the Tribunal. 6. I have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that rolls purchased by the assessee in the earlier years were included in the block of plant machinery and accordingly depreciation at normal rate as applicable to the said block was claimed by the assessee. In the year under consideration, the assessee however showed the rolls separately in the depreciation schedule and claimed depre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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