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2019 (1) TMI 594 - AT - Income TaxDepreciation on CNC Drill Machine - A.O denied 80% depreciation charged by the assessee and only allowed the normal rate of 15% and additional depreciation @20% on the CNC drill machine purchased by the assessee - Held that:- The issue needs re-examination as to whether the impugned assets purchased by the assessee i.e. CNC Drilling machine is eligible for depreciation under which of the category of assets; (a) Being a machine in the nature of agricultural and municipal waste conversion device. (b) Being a machine used to manufacture machines in the form of agricultural and municipal waste conversion device. (c) The machine eligible for 15% depreciation along with 20% additional depreciation. Assessee has placed various documents and materials on record in support of its claim for 80% depreciation on the cost of CNC Drilling machine by submitting that the CNC Drilling machine are used to manufacture Pellet Mill die drills Pelletting dies which are further used for manufacturing agricultural and municipal waste conversion device. However it is not transcribing from the records whether the claim of the assessee is for the assets coming under Clause (xiii)(P) or Clause (xiii) (R) of the depreciation chart which refers to agricultural and municipal waste conversion device producing energy Clause (xiii) (P) or machinery and plant used in the manufacturing of agricultural and municipal waste conversion device Clause (xiii) (R) of the depreciation chart. Since the issue discussed above about the chargeability of depreciation on the cost price of CNC Drilling Machines goes to the root cause of the ground raised before us, the same needs to be examined afresh - Appeal of the assessee is allowed for statistical purpose
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