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2014 (9) TMI 1100 - AT - Income TaxDisallowance of depreciation on plant and machinery - some of the units of the assessee are closed - Held that:- As relying on CIT Vs. Bharat Alumunium Co.Ltd [2009 (10) TMI 505 - DELHI HIGH COURT ] even if some of the units of the assessee are closed, other units are certainly working and the depreciation is to be allowed on the entire block of assets of the plant & machinery and not only individual plant and machinery of each unit of the assessee. When some of the units are closed and some of the units are working, then, the depreciation on the entire block of assets would be allowed. - Decided in favour of assessee. Disallowance of quarry development expenses - Held that:- Admittedly, by removing the overburden of the mines, the assessee has not acquired any asset. It was also explained that removal of the soil, stones etc. in order to reach the deposits of cement grade lime stones is a continuous process and the expenditure is required to be incurred year after year. It was also explained that in the earlier year, such expenditure was always allowed. While allowing the relief, the CIT(A) has relied upon case of Alembic Chemicals Works Co.Ltd. Vs. CIT, Gujarat - [1989 (3) TMI 5 - SUPREME Court], CIT Vs. Associated Cement Company Ltd. - [1988 (5) TMI 2 - SUPREME Court] and Empire Jute Co.Ltd. Vs. CIT - [1980 (5) TMI 1 - SUPREME Court ] . CIT(A) rightly held that the quarry development expenses need to be allowed as a revenue expenditure - Decided in favour of assessee.
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