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2014 (8) TMI 1223 - AT - Income TaxAllowable revenue expenditure OR capital expenditure - expenditure incurred for constructing the “Express Feeder” on behalf of Maharashtra State Electricity Board (‘BSEB’) - said expenditure was incurred to get uninterrupted supply of power necessary for carrying of manufacturing activity. Even, it was treated as capital as per Audit, the assessee has claimed to have entitled for the same as revenue expenditure - HELD THAT:- We find that the Hon’ble Delhi High Court in the case of CIT vs. Dart Manufacturing India (P) Ltd. [2008 (8) TMI 19 - HIGH COURT DELHI] has held that the payment to State electricity board for installing a transformer and LT Lines for supply of electricity – Ownership of the transformer and the LT Lines remained with the electricity board and the fixed capital structure of the assessee remained untouched – Expenditure incurred by the assessee allowable as revenue expenditure as following the decision of CIT vs. Saw Pipes Ltd. [2007 (1) TMI 101 - DELHI HIGH COURT] wherein the expenditure on laying electric service lines for new unit and that may be enduring advantage but intended to enable the assessee to carry on its business more efficiently and profitably leaving the fixed capital untouched. In such situation, the expenditure was allowed as revenue expenditure. Thus we are of the view that the expenditure incurred for construction of “Express Feeder” on behalf of Maharashtra State Electricity Board was deductible as revenue expenditure. - Decided in favour of assessee. Disallowance of additional depreciation on Racks, Trolley, D.G. Set, Air Conditioner for Machinery, Cooler, Refrigerator, Camera, Computer Attendance Card System, Wall Mounting fans and Electrical fittings - deduction shall not be allowed in respect of the plant which was previously used within or outside India by any other person, machinery or plant installed in any office premises or any residential accommodation including in the nature of guest house, any office appliance or road transport vehicles or any machinery or plant, the whole of the cost of which is allowed as deduction by way of depreciation or otherwise - HELD THAT:- Applying the tests laid down by the Hon’ble Supreme Court in Scientific Engeering House Pvt. Ltd. [1985 (11) TMI 1 - SUPREME COURT] to the facts in the instant case, it could be said that the fans installed in the administrative office of the assessee constituted plan and machinery for the purpose of granting depreciation u/s.32 of the Act. We also find that in the case of CIT vs. Delhi Air Port Service [2001 (9) TMI 39 - DELHI HIGH COURT] has held that air conditioner fixed in a bus is an integral part of the bus and therefore depreciation on such air conditioner is allowable at the rate applicable to the bus. In the case of CIT vs. Nathubhai H. Patel [2005 (11) TMI 49 - GUJARAT HIGH COURT] the Hon’ble Gujarat High Court has held that air conditioner and fans in the clinic are entitled to additional depreciation. - Decided in favour of assessee.
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