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TMI Blog2012 (9) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA No.1459/Ahd/2012) by allowing depreciation on moulds @ 40% as against 25% allowable on the dies and moulds used for manufacturing electric and electronic goods by treating the manufacturing facility or the assessee as rubber and plastic goods factory in terms of Appendix-1 to rule 5 of the Income Tax Rules, 1962, ignoring the fact that, in common commercial practice, factories producing electric and electronic goods are not known as a rubber and plastic goods factories. 3. We are deciding both the appeals by taking the facts of ITA No.1458/Ahd/2012. 4. The Assessing Officer has dealt the issue as under:- It is noticed from the computation of depreciation that the assessee has claimed depreciation on moulds @ 40%. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on ₹ 13885946/- ₹ 3980352/- ₹ 82900/- 4476937 13472261 The assessee has claimed ₹ 7163099/- as depreciation on moulds for the assessment year under consideration. But allowable depreciation as discussed above comes to ₹ 4476937/-. Hence an addition of ₹ 2686162/- (₹ 7163099-₹ 4476937) is made to the total income of the assessee on this account. 5. Ld. CIT(A) deleted this addition by following the earlier decision of the Tribunal in assessee s own case vide ITA No.488/Ahd/2007 dated 04.10.2007 for the assessment year 2001-02 wherein following was held:- CIT(A) after considering various judgements and facts of the case held that moulds in question were used for manufacture of plas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra) that once the moulds are used for manufacture of rubber and plastics goods parts though in a component factory manufacturing washing machine, vaccum cleaners etc. the assessee is eligible for deduction at higher rate of depreciation i.e. 40% . Following the said order, it is held that the appellant is entitled to depreciation 40% for the moulds. The Assessing Officer is directed to recomputed the depreciation on moulds accordingly . We have heard rival submission and perused material available on record. In the given facts and circumstances, Madras High Court s judgement to in the case of CIT Vs. Falcon Wires P. Ltd. (supra) is not applicable to the facts of the assessee s case, in or view, tribunal judgement in the case of BPL ..... X X X X Extracts X X X X X X X X Extracts X X X X
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