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2011 (8) TMI 945 - ITAT DELHIDepreciation on spare parts - Revenue denied depreciation on ground that spare parts are not a capital asset - Held that:- Issue stands in favor of assessee in assessee's own case in preceding assessment year. See CIT v. Insilco Ltd. [2009 -TMI - 32655 - DELHI HIGH COURT] - Decided in favor of assessee. Depreciation on electrical wiring - Revenue contended that electrical wiring etc. were not "machinery or plant" but were a part of the factory or other buildings for the purpose of deciding the rate of depreciation - Held that:- From the order of the AO, it becomes clear that his finding is that wiring etc., on which higher depreciation is claimed, are old assets. However, the submissions of the Revenue counsel tend to show that these assets were installed alongwith machinery or plant in this year. None of the lower authorities has applied the mind as to whether the cables and wiring were integral part of the machinery or buildings. Facts have not been fully ascertained in this matter. Matter restored to the file of the AO for determining the year of installation of wiring etc. and the appropriate head under which the wiring etc. should be classified. Interest u/s 234B - Held that:- MAT credit should be allowed before arriving at the amount on which interest is charged u/s 234B and 234D. See CIT v. Jindal Exports Ltd(2003 -TMI - 52119 - Tribunal) Transfer Pricing - ALP - assessee chose comparable uncontrolled price ("CUP" ) method to justify the value of international transactions with the AEs - Revenue contended CUP method to be inappropriate - Held that:- CUP method adopted is appropriate since there is no instance of uncontrolled sale either to Germany or to South American countries where the goods were actually shipped by the assessee on CIF basis. In these circumstances, we think it fit to restore the whole matter to the file of the AO for fresh determination of the ALP of international transactions with AEs. by applying an appropriate method.
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