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2012 (6) TMI 178 - HC - Income TaxWhether ITAT is legally correct in holding that each item below Rs.5000/- is a self unit and, therefore, the depreciation @ 100% is allowable in place of 25%, ignoring the fact that these items are parts of a bigger composite unit where all expenditure to bring the assets into working conditions is to be included in determining the actual cost of fixed asset for the purpose of grant of depreciation – Held that:- assessee purchased certain items which were debited to plant and machinery account as the cost of which was less than Rs. 5000/-each. - Assessing Officer disallowed the depreciation on such items on the ground that it is the composite value of all items is to be taken which will be determinative of the cost of assets and not the item wise cost of these items. assessment order even the Ld. Assessing Officer has mentioned that the assessee filed the details of the additions to the plant and machinery as these are below Rs. 5000/-. There is specific finding in the assessment order that as per the table shown in the (A) & (B) in the assessment order, the assessee is entitled to depreciation at 100%. - appeal filed by revenue dismissed.
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