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TMI Blog2011 (11) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax(Appeals)-III at Chennai, dated 30-7-2010. They arise out of the assessments completed under section 143(3), read with section 147 of the Income-tax Act, 1961. 2. We heard Shri R.B.Naik, the learned Commissioner of Income-tax, appearing for the Revenue and Shri K.Meenatchi Sundaram, the learned chartered accountant, appearing for the assessee. 3. The first issue raised before the Tribunal is that the Commissioner of Income-tax(Appeals) went wrong in allowing depreciation on electrical fittings at the rate of 25% as against the rate of 15% allowed by the assessing authority. It is the case of the Revenue that the entry of Furniture and fittings given in the depreciation table includes Electrical fittings as well and, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the same and the same can be explained by the assessee to the satisfaction of the assessing authority as well. The order of the Commissioner of Income tax( Appeals) on this point is set aside and the issue is remitted back to the assessing authority for fresh consideration in the light of the submissions that may be made by the assessee as well as keeping in mind the observations made by the Commissioner of Income-tax(Appeals). 5. The second issue to be considered by the Tribunal is the question of depreciation on expenses incurred in connection with setting up of breakwater in the port. The assessee has constructed the breakwater in the mouth of the port after mining black rock boulders from its own mines in the land leased out by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort-trust was incurred exclusively for constructing the asset recognized as breakwater . The other expenses were also incurred by the assessee port-trust solely for the purpose of ultimately constructing the breakwater. Therefore, the assessing authority was not justified in excluding those expenditure from the computation of the cost of asset while granting depreciation allowance. The Commissioner of Income-tax(Appeals) has granted the relief, which is rightful in law. The order of the Commissioner of Income-tax(Appeals) on this point is upheld. 7. The grounds raised by the Revenue in both the appeals are the same and, therefore, the above findings are applicable to both the appeals under consideration. 8. The assessee has filed cro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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