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TMI Blog2019 (7) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... at the factory premises of the assessee. There is no doubt that TOP sealer are used for sealing containers for supply of food to the customers, which is part of the process of manufacturing and delivery of the products of the assessee and thus additional depreciation on the same is allowable. The Canopy of Generator is part of the entire plant and machinery engaged for manufacturing. Similarly, there is no doubt that the items Mixi, Lassi machine, Grinder Machine, Charcoal Griller, Table top burner, Gas Plant SS Double Body Tandoor, SS Kadahi Table, SS Selves Barcket Big and small are the items of assets engaged in manufacturing of food products/sweets/namkins etc. The trollys are also used for transferring of raw materials or finished products in the process of manufacturing of food products carried out by the assessee at the retail outlets. We do not find the action of the Ld. CIT(A) in upholding the disallowance of additional depreciation as justified and accordingly, we reject the contention of the CIT(A) in upholding the disallowance. - Decided in favour of assessee. - ITA No.6357/Del/2015 - - - Dated:- 6-6-2019 - Shri O.P. Kant, Accountant Member And Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is aggrieved mainly with disallowance of additional depreciation claimed on certain items of fixed assets. 4. Before us, the Ld. counsel submitted that in immediately preceding assessment year, i.e., AY: 2010-11 the additional depreciation claimed under section 32 (1)(iia) of the Act on similar items was allowed by the Ld. CIT(A) and on further appeal by the Revenue, the finding of the Ld. CIT(A) were upheld by the Tribunal in ITA No. 4139/Del/2014 and the appeal of the Revenue was dismissed. He, accordingly, submitted that issue in dispute is covered in favour of the assessee. 5. The Ld. DR, on the other hand, relied on the order of the lower authorities, but could not controvert the submission of the Ld. AR that in assessment year 2010-11, the issue has been adjudicated in favour of the assessee. 6. We have heard the rival submission and perused the relevant material on record, including the paper book containing pages 1 to 67 filed by the assessee. As per the provisions of section 32 (1)(iia) of the Act, an assessee engaged in the business of manufacturing or production of any article or things is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15,355/- -do- 5. 09.08.2010 Top Sealer TS 150-123C 200/- -do- 6. 09.08.2010 Top Sealer TS 150-123C 15,355/- -do- 7. 11.08.2010 Canopy 10,x8 x6 10,000/- -do- 8. 11.08.2010 Canopy 10 x8 x6 1 1,47,900/- -do- 9. 19.10.2010 Top Sealer TS 300 5 Portion 31,125/- -do- 10. 31.08.2010 Lassi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Top Sealer TS 300-5 Portion 31,125/- -do- 24. 08.01.2011 S.S. Trolley 7,768/- -do- 25. 15.11.2010 Top Sealer 31,125/- -do- 26. 08.01.2011 S.S. Kadahi Table 15,566/- -do- 27. 08.01.2011 S.S. Selves Bracket Big 2,615/- -do- 28. 08.01.2011 S.S. Selves Bracket Small 2,615/- -do- 8. The Ld. CIT(A) has up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be disputed that by virtue of proviso to section 32(1)(iia) of the Act, no additional depreciation is allowable the following eventualities. The relevant proviso reads as under : 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; 9. In view of the aforesaid proviso, no additional depreciation is, inter alia, allowable to any assessee, even engaged in the manufacturing business, if the plant and machinery is installed in any office premises or any resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iia) excluding the additional depreciation. In the year under consideration, also the items of fixed assets have been installed at various retail outlets and there is no dispute between the assessee and the Revenue on this factual aspect. Thus following the finding of the Tribunal, the additional depreciation in the year under consideration also cannot be disallowed on the ground that those items were not installed at the factory premises of the assessee. The second ground for rejection of additional depreciation is that these items are not involved in the actual process of manufacturing of food products/sweets/namkins. In the assessment year 2010-11, also the Tribunal(supra) in paras- 9 observed that items of assets like air conditioners, electricity distribution panel etc are part of plant and machinery engaged for manufacturing of food products/sweets/ namkin etc. The items of fixed asset in the year under consideration are listed in the table above reproduced by us. There is no doubt that TOP sealer are used for sealing containers for supply of food to the customers, which is part of the process of manufacturing and delivery of the products of the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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