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2014 (11) TMI 635 - MADRAS HIGH COURTEligibility for 100% depreciation on vapour absorption heat machine – Validity of rectification order u/s 154 – Held that:- The Tribunal rightly was of the view that the AO lacked jurisdiction to exercise the power u/s 154 of the Act - Vapour Absorption System is included in Energy Saving Devices specified in Para-III, 3(iii) D(b) of Appendix-I to the Income Tax Rules, 1962 and is eligible for 100% depreciation - When there is a specific provision in the Income Tax Rules allowing depreciation at 100% to Vapour Absorption System and the same was granted by the Assessing Officer at the first instance, the subsequent proceedings for rectification under Section 154 of the Act by merely stating that Vapour Absorption Heat Pump is a part of the Centralized Air Conditioner and liable for depreciation at 25%, without giving any reasons, runs counter to Para-III, 3(iii) D(b) of Appendix-I to the Income Tax Rules, 1962 – the order of the Tribunal is upheld and as such no substantial question of law arises – Decided against revenue.
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