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2013 (9) TMI 801 - ITAT KOLKATAWhether Fly Ash Handling System is eligible to be treated as "air pollution control equipment" for the purpose of granting depreciation at 100% - Held that:- Even when Air pollution control equipments are entitled for special rate of depreciation at 100%, still they remain part of machinery and plant as provided in Appendix I - Therefore, the statute itself has taken a view that even though an item belongs to the class of plant and machinery, still it is possible for that item to have its special identity. Therefore, it is only fair to hold that the special status of the Ash Handling System installed by the assessee company does not get diluted only for the reason that it also forms part of the regular plant and machinery of the assessee. The Fly Ash Handling System installed by the assessee while forming part of the plant and machinery erected by the assessee in its factory, still holds the outstanding quality of "air pollution control equipment". Therefore, obviously, the Fly Ash Handling System installed by the assessee is entitled for higher amount of depreciation at 100%. Principle of interpretation contained in the legal maxim generalia specialibus non derogant.A special provision normally excludes the operation of a general provision. This principle can be resorted for deciding the competing averments of two provisions in the same enactment, a general and a special provision with some overlapping between the two - In the present case, the Fly Ash Handling System, even though classified under plant and machinery as a general item, is still qualified as a different class under the heading "Air pollution control equipment" entitled for higher amount of depreciation. Therefore, the special category, under which air pollution control equipment is placed, applies to the Fly Ash Handing System installed by the assessee. Its eligibility for higher amount of depreciation will not be shadowed by the general rate provided for plant and machinery – Decided against the Revenue.
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