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2011 (7) TMI 578 - AT - Income TaxTransit loss - Held that:- The amount relatable to transit loss which was actually deducted may not be income received by or accrued to the assessee till the payment is made by FCI. Therefore, the amount deducted towards transit loss during the financial years relevant for the assessment year under consideration has to be held as amount not received by the assessee. While holding that the amount deducted by FCI has to be allowed as deduction while computing the total income of the assessee, it has to be allowed in the assessment year relevant for the financial year in which the deduction was actually made by FCI. As the details of deduction made by FCI are not available on the file of this Tribunal the matter remitted back to the file of AO to verify the details - in favour of assessee by way of remand. Depreciation on cost/written down value of the warehouses and godowns - Held that:- The word 'plant' is defined in section 43(3) to 'include ships, vehicles, books, scientific apparatus and surgical equipment used for the purpose of business or profession'. Thus the definition is an inclusive one and it is not exhaustive - In the case of Assessee Corporation the warehouse is the apparatus with which carries of its business. The warehouse is not simply is not a place or premises where business is carried on. It is a tool or instrument with which the business is carried, therefore it is rightly claimed to be the plant eligible for depreciation at the rates applicable to the plant - in favour of assessee. Depreciation on wooden crates - @ 100% OR 25% - Held that:- As decided in CIT v. Madurai Soft Drinks (P.) Ltd. [2004 (10) TMI 58 - MADRAS HIGH COURT] that 'crates and bottles were entitled for depreciation at the rate of 100 per cent' - The bottles and shells also satisfied the durability test because it was nobody's case that their life was so transitory or negligible as to warrant an interference that they had no function to play in the assessee's trade, therefore to be taken as 'plant' for the purpose of the Act and the assessee is entitled to depreciation in respect of them under section 32(1)(ii) - in favour of assessee.
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