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2023 (4) TMI 1117 - PUNJAB AND HARYANA HIGH COURTRectification of mistake u/s 154 - disallowing the excess depreciation claimed on account of machinery being put to use in March, 2007 - assessee had claimed and allowed full depreciation and additional depreciation of substantial part of addition, which was allowable @50% as the assessee had put these assets to use in February, 2007 and the period of less than 180 days for the assessment year 2007-08 - HELD THAT:- As per the order passed u/s 147 assessee had claimed benefit of depreciation for the whole year for purchase of new machinery. Reference was made to Section 36(1)(iii) of the Act, which provided that any amount of interest paid in respect of capital borrowed for acquisition of an asset, shall not be allowed as deduction till the date on which, such asset was first put to use. As per the assessee itself, the machinery purchased was put to use in February, 2007 and this fact was not noticed by the AO while passing the impugned order - In the said order, 100% depreciation was given by taking the date of putting the machinery to use by 21.08.2006. Assessee had produced the Fixed Assets Register for the financial years 2005-06 and 2006-07 showing the date of purchase, installation and date of put to use of these assets; certificate of M/s Power Tracks approved Chartered Engineers, to prove the date of installation of the new plant and machinery; and certificate of Central Excise Department regarding installation of new plant and machinery, which showed that the assets were installed by August, 2006 and details of WIP provided by the assessee showed that the above said machinery was capitalized in the month of February, 2007 and it had been put to use in less than 180 days. The above said evidence was sufficient to return a finding of fact that the claim on depreciation had to be allowable at 50% due to less use during the assessment year in question. No occasion to conduct further investigation with regard to putting of use of this machinery for less than 180 days as the evidence before the AO showed that the machinery had been put to use in February, 2007, as per the details provided by the assessee. In these circumstances, it is held that proceedings u/s 154 of the Act were correctly initiated.
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