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2019 (4) TMI 1972 - AT - Income TaxRevision u/s 263 - The claim of depreciation being allowed on plant and machinery though the manufacturing activity had been stopped, under valuation of a closing stock and non verification of the cost of improvement of the assessee - HELD THAT:- CIT has not only to establish that the assessment order is erroneous but also to establish that the assessment order is prejudicial to the interest of the revenue. Further, we find that on two of the issues i.e. the cost improvement and under valuation of closing stock, the A.O. had verified the facts during the assessment proceedings itself. As far as the allowability of depreciation on plant and machinery is concerned, we find that the decision of the Hon'ble Delhi High Court in the case of CIT Vs. Oswal Agro Mills and Oswal Chemicals and Fertilizers Ltd. [2010 (12) TMI 947 - DELHI HIGH COURT] is very much applicable and the depreciation is allowable on idle plant and machinery, and therefore allowing of such depreciation cannot be treated as erroneous order. The case laws relied upon by the Ld. DR are all distinguishable on facts, therefore, they are not applicable to the facts of the case before us. In the result, we set aside the order of the CIT u/s. 263 of the Act was not sustainable. Appeal filed by the assessee is allowed.
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