TMI Blog2015 (3) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 23, the price of ₹ 10/- per qtl. was not unreasonable and thus the agreement between the assessee and M/s U.P. Straw Board Project Pvt. Ltd. was not unreasonable or unjustified. We have upheld the finding of ITAT as finding of fact. - Decided in favour of assessee. Depreciation on tubewell - Tribunal upholding the order of CIT (A), who directed to treat tubewell as a plant - whether the Tribunal was right in law in failing to allow investment under Section 32A of the Act on canteen equipment and water coolers having failed to appreciate that these items are also plant and machinery? - Held that:- So far as factory cleaning machines are concerned, the Tribunal has upheld the view of the CIT(A) and also noted that the investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation on revalued of asset for the purpose of computation of income u/s. 115J - Held that:- As relying on CIT Bareilly v. Rampur Distillery and Chemicals Ltd., [2013 (1) TMI 59 - ALLAHABAD HIGH COURT] decided in favour of the assessee - Income Tax Appeal No.461 of 2007 - - - Dated:- 16-12-2013 - Sunil Ambwani and S.P. Kesarwani, JJ. JUDGEMENT Hon. S.P. Kesarwani, J. We have heard Shri Dhananjay Awasthi, learned counsel for the income tax department. Shri R.R. Agrawal, Sr. Advocate assisted by Shri Suyash Agrawal appears for the respondent. This appeal arises out of order of the Income Tax Appellate Tribunal dated 17.2.2003 passed by the Income Tax Appellate Tribunal in ITA No.4125/D/93 relating to assessment year 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufficient reasons to uphold the order of CIT (A) deleting addition of ₹ 52,71,573/- on the sale of bagasse. We have upheld the findings of ITAT that an agreement with the sister concern at the beginning of the accounting year at consistent rate on which bagasse was sold, throughout the year does not require any interference. Since the rates were fluctuating throughout the year and that the continuous supply of bagasse had to be maintained for producing electricity, the agreement to the sister concern at consistent rate of ₹ 10/- as against the fluctuating market rate of ₹ 7.65 to ₹ 23, the price of ₹ 10/- per qtl. was not unreasonable and thus the agreement between the assessee and M/s U.P. Straw Board Project ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no.2 of Income Tax Reference No.122 of 1995, CIT v. Dhampur Sugar Mills, Dhampur decided on 29.04.2005 inter party and is decided in favour of the assessee and against the revenue. Question No.6 Whether on the facts and circumstances of the case the Hon'ble Tribunal was legally justified in upholding the order of CIT (A), who directed to treat tubewell as a plant? It is submitted by Shri Dhananjay Awasthi appearing for the revenue that ITAT has erred in law in allowing depreciation on tubewell. He submits that tubewell is not included within the definition of the word 'plant' to be given depreciation under Section 32 (1) (i) of the Act. The sugar industry is not water intensive industry nor does it require water as r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 'plant' includes whatever apparatus is used by a person for carrying on his business. [See CIT v. Elecon Engg. Co. Ltd., (1974) 96 ITR 672 (Guj) and CIT v. Elecon Engineering Co. Ltd., (1987) 166 ITR 66 (SC). It may be noted that data processing machines, computers, weighing scales and cranes and items of similar nature are held to be plant in CIT v. IBM World Trade Corpn., (1981) 130 ITR 739 (Bom), CIT v. Emirates Commercial Bank Ltd., (2003) 262 ITR 55 (Bom) and CIT v. Mahindra Ugine Steel Co. Ltd., (1998) 233 ITR 204 (Bom), respectively. So far as factory cleaning machines are concerned, the Tribunal has upheld the view of the CIT(A) and also noted that the investment allowance had been granted on such items in the earlier ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee-employer has to provide for its workers, however, the Tribunal upheld the view of the CIT(A) that as the water cooler is not directly involved in the manufacturing process of ball bearings, it is not entitled to investment allowance. Even if sugar mill is not water intensive industry, we cannot visualise that industry can run without water. The water drawn from tubewell may be stored in tanks. The water is essential for the purposes of various processes involved in manufacture of sugar and its byproduct such as molasses and bagasse. It cannot be said that use of water is not necessary for manufacturing of sugar. In the circumstances, we hold that the tube well including its machinery and building would be used for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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