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2019 (3) TMI 499 - HC - Income TaxDepreciation on dies and moulds @ 100% - replacement of the dies and moulds - HELD THAT:- Isuue covered against the Revenue, in the light of the decision in the assessee's own case in CIT vs. TVS Motors Limited [2014 (2) TMI 522 - MADRAS HIGH COURT] with regard to the moulds and dies attached to the machinery like press designs specification, moulds and dies are not independent of the plant and machinery, but are parts of the machinery. Once the dies are worn out, the machines cannot turn out the product to the business specifications and this has to be obtained only on a replacement of the dies and moulds, a fact which is not refuted by the revenue – the right of the assessee to the relief is not restricted to the plea raised by him. On the facts before us, when the dies and moulds were attached to the machine to manufacture the designed product, we have no hesitation to accept the plea of the assessee that the claim would fall for consideration only under Section 31 of the Act. - Decided against revenue Depreciation on plant - HELD THAT:- No challenge with regard to the claim for depreciation in respect of the Reverse Osmosis Plant and TET Plant - Assessing Officer restricted the claim of depreciation to 10%. However, he did not assign any reason for doing so. on seeing the note furnished about the Reverse Osmosis System and the TET Plant, it was observed that there is no doubt that the civil structures are part of the entire plant, without which, the plant cannot function. The concrete tanks, pump beds, filter unit beds are special requirements to hold water or motor and pump in a sturdy position at required height and without this, the Reverse Osmosis cannot function properly and therefore, the CIT(A) directed the Assessing Officer to treat the civil structures as part of the 'plant and machinery' and allow depreciation at the same rates, at which, the relevant plants were allowed. - Decided against the Revenue.
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