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TMI Blog2013 (1) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... 2455 & 2538 of 2006 are common and it reads as under: "Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the appellant is not entitled to claim higher rate of depreciation at 40% on the moulds and moulding tools for the manufacture of plastic goods as provided under item III of Machinery and Plant (2)(iii) of Appendix-I and Rule 5 of the Income Tax Rules, 1962?" It may be noted that in addition to the question of law referred to above, there is yet another substantial question of law raised in T.C.A. Nos. 2455 & 2538 of 2006 relating to the assessment years 1998-1999 and 1997-1998 respectively and it reads as under: "Whether on the facts and circumstances of the case the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal and the Tribunal pointed out that the assessee had not produced any material to show that it had a separate unit to manufacture plastic parts when it is admittedly engaged in the manufacture of heavy electricals and parts and not engaged in the manufacture of rubber or plastic goods and held that the assessee was not entitled to the relief of depreciation @ 40%. In holding so, the Tribunal applied the decision of this Court in CIT v. Falcon Wires (P.) Ltd. [1980] 123 ITR 427. Aggrieved by this, the assessee is before this Court. 4. Learned counsel appearing for the assessee pointed out that immediately on the dismissal of the assessee's claim, the assessee had filed M.P. Nos. 256 to 258/Mds/2005 before the Income Tax Appellate Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner. It is also a matter of record that the assessee did not file any tax case as against the order of the Tribunal dismissing M.P. Nos. 256 to 258/Mds/2005. 5. Leaving that aspect aside, learned counsel for the assessee pointed out that when the unit manufacturing plastic goods located at Pondicherry is a separate unit and the assessee had also made necessary application for recognition of its unit before the Department of Industrial Development, Ministry of Industry, Government of India and the Annual Report and Accounts for the year ending 31.03.1992 referred to the separate unit at Pondicherry manufacturing switches of plastics, switches of other materials, plugs and sockets of plastics and plugs and sockets of other materials, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be entertained. 7. As far as the reliance placed by the Revenue on the decision of this Court in Falcon wires (P.) Ltd.'s case (supra) is concerned, we do not think that the said decision will be of any assistance to the Revenue. The said decision deals with the case of a manufacturer of insulated wires. The nature of manufacture has been described by the AAC as follows: "In the instant case, the plant and machineries were worked in the factory manufacturing insulated wires and not rubber and plastic goods factories. The mere fact that the wires manufactured by the assessee had a coating of plastic, would not, in my view, convert those machineries as used in rubber and plastic goods factories." Pointing out the above said fact, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the observation made in the Commissioner's order relating to the assessment year 1991-1992. The First Appellate Authority pointed out that though the assessee did not have a rubber or plastic goods factory exclusively, it had a unit wherein moulds and moulding tools for manufacturing plastic covers, seals, shrouds were installed and such plastic covers, seals, etc. manufactured were finally utilised in the manufacture of products dealt in by the assessee. He had also pointed out that installation of the moulds and moulding tools in the factory of the appellant was never in dispute. The said order of the Commissioner is dated 07.11.1996. We find from the order dated 19.07.2000 relating to the assessment year 1999-2000 that the Joint Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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