Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 426 - AT - Income TaxRevision u/s 263 - assessee has claimed additional depreciation on plant and machinery u/s 32 (1)(iia) which was not verified by the AO during the course of assessment proceedings - whether activity of mining and extraction of coal amounts to manufacturing activity? - Held that:- As relying on CIT vs. G.S Atwal & Co. (2001 (2) TMI 32 - CALCUTTA High Court) there remains no ambiguity that the activity of assessee i.e. mining and extracting of coal is manufacturing activity. Therefore, assessee is very much entitle for additional depreciation u/s 32(1)(iia) of the Act. It was also observed that the issue about the activities of assessee was duly examined by AO during the course of assessment proceedings as evident from the submission of Ld. AR discussed in the preceding paragraphs. Therefore, in our considered view AO allowed the claim of assessee for the additional depreciation after necessary verification and application of his mind. Similarly, we find that Ld. Pr. CIT in his impugned order u/s 263 has held that AO has not verified the necessary details of the plant and machinery purchased during the year. In this regard, we find that the AO has raised the queries regarding the addition of fixed asset which are duly responded by the assessee during the course of assessment proceeding. In view of above, we feel that the assessment order u/s 143(3) of the Act was passed duly after due examination of the records for the addition of plant and machinery as well as activities carried on by assessee - Decided in favour of assessee
|