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2017 (2) TMI 914 - AT - Income TaxDisallowance of depreciation claim made in course of assessment proceedings - Plant & machinery merge with motor vehicle so as to form a single block of assets - seeking to include the alleged short term capital gains arising from sale of motor vehicles with the other block of assets of plant and machinery thereby assessing its short term capital gains u/s.50 Held that:- Section 2(11) of the Act means a group of assets falling within the respective categories/clauses (a) & ( b) and the former one pertaining to tangible assets including building , machinery, plant etc. The relevant appendix of rate of depreciation prescribing the same rate of depreciation of 15% for plant and machinery and motor vehicles forms a single category of block of assets. We accordingly observe that the assessee was very well justified in seeking to merge its plant & machinery with motor vehicle so as to form a single block of assets as per provisions of the Act. We thus direct the Assessing Officer to frame necessary consequential computation as per the assessee’s revised depreciation schedule filed in the course of assessment proceedings as per law. See M/s. Filmcraft Productions India Ltd. vs. Addl.CIT [2015 (7) TMI 1193 - ITAT MUMBAI] and Ansal Property & Infrastructure Ltd.[2012 (4) TMI 469 - DELHI HIGH COURT ] - Decided in favour of assessee
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