9911796707
TMI Blog2018 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... e assets. The appellant's argument that since ‘main machinery' used by it is 'injection moulding machine', all the items should qualify for depreciation @30% is devoid of merits since lab equipments, electrical fittings, vehicles etc. form separate block of assets on which different rates of depreciation are applicable. - Decided against revenue - ITA No. 5318/Del/2014 - - - Dated:- 27-2-2018 - Sh. Bhavnesh Saini, Judicial Member And Sh. L.P.Sahu, Accountant Member Revenue by Sh. S.R.Senapati, Sr. DR Assessee by None ORDER Per L.P.Sahu, Accountant Member : This is an appeal filed by the revenue against order dated 14.07.2014 passed by the ld. CIT(A)-X, New Delhi for assessment year 2008-09 on the following gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in over assessment of loss of ₹ 71,16,929/-. I have therefore, reason to believe that an amount of ₹ 71,16,929/- represents income of the assessee for the A.Y. 2008-09 which has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961. 3. The Ld. Assessing officer observed that the assessee company has claimed depreciation of ₹ 1,39,55,650/- and which has been allowed @ 30% on Plant and Machinery, Lab equipment, Office equipment Electrical fitting and office vehicles and the same was allowed at a higher rate of depreciation than the allowable rate of depreciation @ 15% on Plan Machinery, Lab equipment, office equipment, office vehicles and 10% on electrical fitting only. 4. During the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal of the assessee on merit. 6. Aggrieved by the deletion of ₹ 71,18,710/- the revenue came before the Tribunal. 7. Ld. DR relied on the order of the assessing officer and he submitted that the Ld. AO has rightly calculated the depreciation no any extra depreciation can be allowed to the assessee @ 30% because the assessee has not submitted any proof for operating in the multiple shifts of the factories. 8. On the other hand, the Ld. AR reiterated the submissions made before the CIT(A) and he submitted that the plant is operating 24 hours. On the original assessments made u/s 143(3), the ld. Assessing Officer had examined in details. 9. After hearing both the sides, perusing the material available on records and gone th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate proceedings, it has been claimed that the entire plant machinery including the office equipments, office vehicles etc. are categorized as moulds used to rubber and goods factories and, therefore, @30% is justified. On perusal of new Appendix I (table of rates at which depreciation is admissible) it is observed that in respect of plant machinery the rate of depreciation is applicable at 30% (instead of 15%) on moulds used in rubber and plastic goods factories only. The item is very specific and to come under the category of moulds only the plant and machinery which is used in such activity can qualify for higher rate of depreciation. Whether the injection moulding machines used by the appellant in converting the granules i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
