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2015 (11) TMI 730 - AT - Income TaxDepreciation on Chlorine toners - whether @ 60% instead of 15% applicable to plant and machinery of Caustic Chlorine Plant? - Held that:- Admittedly, the toners are being used for storage and transportation of chlorine gas generated in the plant of the assessee. Certificate of the experts also indicated that the same was a gas cylinder. Reference is also made to the Gas Cylinders Rules where the term Gas Cylinder" has been defined as closed metal container having volume exceeding 500 millilitre but not less than 1000 litres intended for storage and transportation of compressed gas including Liquefied Petroleum Gas (LPG). The Tribunal was correct in law in considering the 'toners' as 'gas cylinders' and accordingly directing the Assessing Officer to allow depreciation @ 60% in Chlorine toners. SEE Commissioner of Income Tax Versus Gujarat Alkalies And Chemicals Ltd. [2014 (2) TMI 77 - GUJARAT HIGH COURT ] Disallowance of additional depreciation of ₹ 32,29,051/- on computers installed in the factory premises - ITAT deleted the disallowance - Held that:- t there cannot be universal preposition of law that computers are used only in offices and not for manufacturing activities. The insistence of the Assessing Officer that the same should therefore be treated as office appliance cannot be countenanced. Perhaps if it was shown that the computers formed part of the integrated manufacturing process, his stand that the same would form part of the plant and machinery may have some basis. In the present case, no such material was available on record. It is not as if that in factory premises, computers cannot be installed for direct use in manufacturing activity; thereby forming part of machinery used in such activity. There may be number of ways in which installation of a computer may enhance and improve the efficiency. There is nothing on record to suggest that the computers were part of the plant and machinery. Whether if the computers were the part of the machinery and plant eligible for additional depreciation u/s 32(1) (iia) of the Act, then allowable depreciation on computers would be 15% instead of 60% as claimed by the assessee? - Held that:- In the present case, it is noted that the assessee is engaged in the business of producing chemicals, such as, Caustic Soda, and Caustic Potash and installed a new machinery i.e. Wind Electric Generator. Therefore, in the light of judgment of the Hon'ble Madras High Court in case of CIT vs. Texmo Precision Castings (2009 (10) TMI 140 - MADRAS HIGH COURT), the Assessing Officer was not justified to disallow the claim of the assessee. The revenue has not placed any contrary judgment by Hon'ble Supreme Court or Jurisdictional High Court. Therefore, we do not see any reason to interfere with same and same is hereby affirmed. The ground of Revenue's appeal is dismissed.
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