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2018 (12) TMI 1634 - AT - Income TaxDepreciation at 60% on oil rigs - higher rate of depreciation on the hired out oil rigs - validity of section 147 proceedings - HELD THAT:- CIT(A) upheld the validity of the proceedings under section 147 but in respect of the merits, observed that the plant and machinery of the assessee i.e. oil rigs owned by them and are leased out to various mineral oil concerns like Reliance Industries Limited, Orles Ltd and ONGC Ltd and claimed 60% deposition on such rigs. CIT(A) observed that the AO did not discuss the issue of the specific plant and machinery but ultimately held that the assessee is not a mineral oil concern and did not fulfill one of the basic conditions to entitle themselves to claim the depreciation at 60%. CIT(A), as a matter of fact, found that the assets of the oil rigs are wholly owned by the assessee and are used for the purpose of business of the assessee which is to give on lease these assets. Following the decision of the Hon’ble jurisdictional High Court in the case of HLS India [2011 (5) TMI 322 - DELHI HIGH COURT] learned Ld. CIT(A) granted relief to the assessee and deleted the addition. It is not the case of the revenue that the ratio laid down by the Hon’ble jurisdictional High Court in the case of the HLS India Ltd (supra) has no application to the facts of the case but the only ground on which the AO did not follow the same is that the Department has preferred an SLP against such order to the Hon’ble Supreme Court [2012 (2) TMI 669 - SUPREME COURT OF INDIA]. Now the things are clear and SLP preferred against the orders of the jurisdictional High Court was dismissed. No illegality or irregularity in the finding of the Ld. CIT(A). We consequently uphold the said finding and dismiss the ground of appeal of the revenue
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