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2023 (5) TMI 753 - HC - VAT and Sales TaxLevy of additional tax - valuation - works contract - deduction of depreciation on machinery and tools - claiming of excess deductions on account of expenses and profit elements or not - HELD THAT:- It is crystal clear that notwithstanding the fact that there was no specific provision in the Act, 2003 qua deduction of depreciation in plant and machinery while computing taxable turnover on works contract at the relevant time still, keeping in view the principles as laid down in Gannon Dunkerley & Co.’s case [1992 (11) TMI 254 - SUPREME COURT] which had been interpreted by different High Courts in the above cited authorities, the said provision is to be interpreted to mean that the deduction for a claim in the nature of depreciation on account of use of plant and machinery was in contemplation of the discussion before Apex Court in Gannon Dunkerley & Co.’s case. We also consider it relevant to mention here that the principles of law as laid down in Gannon Dunkerley & Co.’s case were not discussed in Thampi & Company’s case [2009 (6) TMI 960 - KERALA HIGH COURT]. Therefore, the Tribunal while allowing the appeal filed by the respondent-assessee and allowing deduction on account of depreciation of plant and machineries made by the respondent-assessee by observing that the said deduction would cover charges for obtaining on hire or otherwise machineries of the assessee cannot be held to be at any fault and therefore the order passed by the Tribunal deserves to be upheld. Since this question of law had been raised in all the five instant appeals, therefore, the same stands answered in favour of the respondents-assesses of these appeals and against the appellant. Appeal dismissed.
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