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2015 (1) TMI 105 - HC - Income TaxNature of assessee and rate of depreciation - Whether the Tribunal was correct in holding that the assessee company is a semi- conductor industry and allowing depreciation at a higher rate of 40% - Held that:- POY is a semi-finished product - It is a raw material/input - The raw material or input gets converted into a texturized yarn by reason of the thermo mechanical process - POY is unfit for the manufacture of fabric – POY means partially oriented yarn whereas a cellulosic filament yarn is a final product in the sense after processing can be used directly for the manufacture of fabric - the reasons recorded by the CIT(A) as well as by the Tribunal are reasonable and proper and do not call for any interference - the technical expert from the Ministry of Communications and Information Technology has opined that for the purpose of mounting of silicon chips on PCB special equipments like chip bonding/wire bonding etc. are required which are the same required in any IC manufacturing industry and chip bonding operation in ECB assembly is 1st part of the manufacturing process - There is nothing contrary placed on record to controvert the expert opinion given by the technical person from the department of Information Technology - since the assessee is applying the use of machinery and plant used in the semi-conductor industry, the assessee company is entitled to claim depreciation at 40% in accordance with Entry no. XI part "A" (ii) of Old Appendix I under Rule 5 – the order of the Tribunal is upheld – Decided against revenue.
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