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2016 (7) TMI 265 - AT - Income TaxDepreciation on Plant & machinery - @60% OR 15% - Assessee was engaged in the business of providing services like testing, analysis and inspection services relating to oil and gas to various companies like ONGC, Reliance, British Gas, etc. - For providing above services, the assessee company purchased specialized plant & machinery used specifically for oil & gas industry - AO observed that assessee is not eligible for claiming depredation @ 60%, as the assessee was engaged into providing services in relation to oil & gas and not involved into direct business. Held that:- Impugned issue squarely covered in favour of assessee by Delhi High Court ruling in the case of HLS India Limited [2011 (5) TMI 322 - DELHI HIGH COURT] allowing depreciation @ 60% in such cases - Decided in favour of assessee Disallowance being Site Advances and Rent Deposits written off and claimed as business loss - Held that:- Instead of giving a finding on assessee’s claim, CIT(A) was simply carried away by the observations made by AO in the light of the provisions of section 36(2) of the Act. There is no dispute that the claim of the assessee could not be allowed as a bad debt in the light of the provisions of section 36(2) of the Act but nevertheless the claim is justified as a business loss. Since both these amounts are directly related to the business of the assessee, therefore, the claim of business loss cannot be brushed aside lightly. We accordingly set aside the findings of the ld. CIT(A) and direct the A.O. to delete the addition - Decided in favour of assessee
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