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2015 (7) TMI 939 - AT - Income TaxDisallowance of depreciation on electrical installation - The assessee had claimed depreciation @ 15% on the electrical installations and further additional depreciation of 10% - Assessing Officer held that the electrical equipment was eligible for depreciation only at 15% as the same fell within the “electrical fittings” which were required for the power distribution to the plant and machinery - Held that:- A perusal of the items as mentioned in page 2 of the assessment order for the assessment year 2006-07, which are substantially the electrical items in respect of the claim of depreciation, shows that these are items which form part of the plant and machinery. These items are not simple electrical fittings, for example industrial cables, power distribution board, control cabin, converter panel, etc. do not have standard alone function. They are part of the plant and machinery. The electrical fittings as mentioned by the Income Tax Rules on which depreciation is specified at 10% are such items which can function on a standard alone basis such as fan, light and the attachments thereto representing wires, switches, etc. The items which have been mentioned in page 2 of the assessment order clearly are not simple electrical fittings. These go to form part of the plant and machinery. Consequently the same would have to be held to be eligible for depreciation at the rate provided for plant and machinery. - electrical installation was to be treated as part of plant and machinery for depreciation at the specified rate provided for plant and machinery. Revenue has not been able to dislodge this specific finding of the ld. CIT(Appeals), consequently the finding of the ld. CIT(Appeals) on this issue stands confirmed. - Decided against Revenue.
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