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2014 (7) TMI 163 - AT - Income TaxDepreciation on aircrafts @ 40% - revenue granted depreciation considering the same as plant and machinery - Held that:- The decision in SRC Aviation (P) Ltd. Versus Deputy Commissioner of Income-tax, Circle 9(1) [2011 (8) TMI 749 - ITAT DELHI] followed - no justification in observations of CIT that the aircraft of the assessee should not be described as ‘aeroplane’ simply for the reason that ‘aeroplane’ is a machine much bigger, heavier and powerful than an aircraft which travels in the air more than an aircraft - the aircraft owned by the assessee cannot be thrown out of the category of ‘aeroplane’ and the aircraft owned by the assessee cannot be considered only as ‘Plant and Machinery’ which is a term distinct to such type of aircraft - aircraft as ‘aeroplane’ and granting depreciation to the respective assessees @ 40% - revenue has not been able to bring on record any of the cases wherein such aircraft has been considered by them eligible for depreciation under the head ‘Machinery and Plant’ - the AO had granted the depreciation to the assessee @ 40% in accordance with the provisions of the Rule - grant of depreciation cannot be considered to be a claim not supported by law, as the department cannot straightaway show that such claim of depreciation was not in accordance with the law and, in such, circumstances, the powers u/s 263 could not be invoked – Decided against Revenue.
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