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2017 (5) TMI 833 - AT - Income TaxScope of Rectification of mistake - AO issued notice u/s 154 requiring the assessee to explain as to why depreciation claimed by the assessee should not be disallowed as there was no generation of power - Held that:- AO has completed the assessment u/s 153A of the Act and hence all the facts were before him. The power generating unit did not function during the previous year. However, that would not itself justify the order passed by the AO u/s 154 of the I.T. Act. Since there is no mistake apparent on record and also relying on the ratio of the decision of the Delhi High Court in Capital Bus Service Pvt. Limited case [1980 (2) TMI 69 - DELHI High Court] wherein held The allowances for normal depreciation does not depend upon the actual working of the machinery; it is sufficient if the machinery in question is employed by the assessee for the purposes of the business and for no other business and it is kept by him ready for actual use. Thus we hold that the order u/s 154 passed by the AO is not correct and allow the assessee’s appeal.
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