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2007 (3) TMI 746 - HC - Income TaxClaim for 100% depreciation - Automatic coal system, treating it to be a part and parcel of the boiler? - Depreciation on boiler and furnaces in clause (d) relating to the high efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers) - HELD THAT:- It has not been shown by the revenue that coal container, coal conveyer and bucket elevator, dust collecting system can individually be utilised for any other purpose. Apart from the fact that there was no other purpose for the use of this machinery in the assessee’s Company, the further fact that these were integral components of the boiler, strengthens the view that they also become eligible to 100 per cent depreciation as was allowed in the case of Cochin Refineries Ltd.[1987 (1) TMI 9 - KERALA HIGH COURT]. We are, therefore, of the view that the questions formulated in this case should be answered in favour of the assessee and against the revenue. We accordingly hold that the Tribunal did not err in extending benefit to the assessee towards depreciation at the rate of 100 per cent on the automatic coal system, treating it to be a part and parcel of the boiler, and that on these items the assessee was not required to restrict its claim to 25 per cent. In the result both these appeals are dismissed, but with no order as to costs.
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