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2017 (5) TMI 1052 - HC - Income TaxDisallowance of depreciation - assessee claimed 15% depreciation on the electrical installations used for manufacturing activity - ITAT allowed claim - Held that:- This Court is of the opinion that the ITAT’s findings are sound. As noticed by CIT(A), steel and power ingots manufacturing is power- intensive, necessitating continuous power generation. For this purpose, the assessee had installed certain electrical sub-stations, towers etc. and other supporting equipment. These were an integral and critical part of its manufacturing process and cannot be compared with electrical fittings which have been defined in Note 5 to Appendix 1(E) & (G) which talks of electrical fittings as including electrical wiring, switches, sockets, other fittings and fans etc. A clear demarcation, therefore, is essential; wherever electricity generation or continuous power supply is essential for the basic industrial activity of an assessee or unit, the heavy equipments so used cannot fall within the rubric of fitting such as fans, switches etc. as to disqualify for depreciation - Decided against revenue
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