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2014 (2) TMI 792 - HC - Income TaxPower of the Tribunal u/s 254(2) of the Act Held that:- The decision in Honda Siel Power Products Ltd Versus Commissioner of Income Tax, Delhi [2007 (11) TMI 8 - Supreme Court of India] followed - the purpose behind the enactment of Section 254 (2) is based on the fundamental principle that no party appearing before the Tribunal, be it the assessee or the department, should suffer on account of any mistake committed by the Tribunal the fundamental principle has nothing to do with the inherent power of the Tribunal - if prejudice had resulted to the party, which prejudice is attributable to the Tribunal's mistake, error or omission and which error is a manifest error, then the Tribunal would be justified in rectifying its mistake which was not done in the case - the Tribunal was satisfied that the assessee's claim was reasonable, nevertheless, rejected their claim thus, the order dated 17.08.2005 passed by the Tribunal under Section 254 (2) of the Act is wholly within jurisdiction and perfectly justified. Allowability of depreciation @ 100% u/s 32 of the Act - block of assets u/s 2(11) - Assets used for the purpose of other than engineering products Held that:- The findings of the Tribunal is justified in respect of the wind energy generators used in the process of manufacture of wind mills - So far as other machineries, viz., drilling machines, boring machines, boring machine for foundation work and lathe machine, are concerned, the Assessing Officer, on verification of the Written Down Value (WDV) of 100% depreciation block, found that the entire plant and machinery is included in the block - The generator sets being one such block of asset falling for consideration under Clause 10A of the depreciation table, this alone would qualify for the rate as prescribed under 'renewal energy devices', i.e., 100% depreciation - As far as other machineries are concerned, as rightly pointed out by the Assessing Officer, the same would qualify for depreciation at 25% and not at 100% as claimed by the assessee - the Assessing Officer is directed to re-work the relief on the grant of depreciation treating generator sets as the block of assets used in the manufacture of wind mills and the other machineries would not fall within that head of block of asset, but would entitle to the relief of depreciation at such rate as has been fixed by him Decided partly in favor of revenue.
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