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TMI Blog2012 (6) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... g substantial question of law:- "Whether on the facts and in the circumstances of the case, the ITAT is legally correct in holding that each item below Rs.5000/- is a self unit and, therefore, the depreciation @ 100% is allowable in place of 25%, ignoring the fact that these items are parts of a bigger composite unit where all expenditure to bring the assets into working conditions is to be included in determining the actual cost of fixed asset for the purpose of grant of depreciation as held by the Hon'ble Bombay High Court in the case of CIT v. Hindustan Polymers Ltd. [1985] 156 ITR 860 (Bombay)?" 2. Briefly stated, the facts necessary for adjudication as narrated in the appeal are that the return for the assessment year 1995-96 was fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld by the CIT(A). Hence, the present appeal by the revenue. 3. We have heard learned counsel for the parties. 4. The point for consideration in this appeal is regarding the allowability of rate of depreciation to the assessee-Board. 5. The claim of the assessee was that the items on which the depreciation was claimed valued less than Rs.5000/- each and, therefore, under the proviso to Section 32 of the Act, 100% depreciation was allowable. 6. On the other hand, the revenue had allowed 25% depreciation holding that the total value of the plant and machinery on which depreciation was claimed exceeded Rs.5000/-. The revenue had placed reliance on a Bombay High Court judgment in CIT v. Hindustan Polymers Ltd. [1985] 156 ITR 860. 7. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee filed the details of the additions to the plant and machinery as these are below Rs. 5000/-. There is specific finding in the assessment order that as per the table shown in the (A) & (B) in the assessment order, the assessee is entitled to depreciation at 100%." 9. The aforesaid finding has not been shown to be perverse in any manner by the learned counsel for the revenue. Further, the judgment of Bombay High Court in Hindustan Polymers Ltd's case (supra) on which reliance had been placed by the revenue was a case where the assessee had sought to include all expenditure incurred for bringing the asset into working condition in the actual cost of the asset for determining depreciation thereon. The claim of the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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