TMI Blog2015 (10) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in the case of CIT V/s. Birla Jute and Industries Ltd. (2003 (1) TMI 81 - CALCUTTA High Court) and in the case of Kandla Port Trust (2006 (4) TMI 243 - ITAT RAJKOT). Respectfully following the said decision of coordinate bench of the Tribunal for assessment year 2006-07, we uphold the impugned order of the learned CIT(A) allowing the claim of the assessee for depreciation at 15% on Railway siding, treating the same as plant. As regards the issue relating to the claim of the assessee for depreciation at 15% on channel dredging being plant, it is observed that a similar claim was made by the assessee in the case of Kandla Port Trust (supra) on wharfs, dry docks, drains, jetties, railways, rolling stock, etc., treating the same as plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding, the assessee company was entitled to depreciation at 10% thereon. He, therefore, required the assessee to explain as to why depreciation on these two items should not be restricted to 10%. In reply, the following explanation was offered by the assessee. The Railway Sidings was laid by the port for handling of cargo while loading and unloading operations are carried out. Railway siding is the essential for incoming and outgoing cargo, and is part of the plant in relation to the business of the Prot. Hence Kakinada Sea Ports Ltd.(KPL) is eligible for claiming of depreciation of railway siding under the head Plant and Machinery and the rate of depreciation is at 15%. Reliance may be placed on the decision of Hon'ble Calcutta High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the nature of building and the assessee was entitled to depreciation at the rate 10% thereon instead of 15% as claimed by the assessee. Similarly, he held that the expenditure incurred by the assessee for digging out the soil to deepen the sea way so that it can be used by ships to reach berths, was akin to construction of road on land and the same therefore, constituted building eligible for depreciation at the rate of 10%. Accordingly, depreciation on channel dredging was also allowed by the Assessing Officer only at 10% as against 15% claimed by the assessee. 5. The action of the Assessing Officer in restricting its claim for depreciation on railway siding and channel dredging channel was challenged by the assessee in the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets classified as building . The said asset is not fitting into any other type of asset. But, such an asset is required for carrying on the business activity. Therefore, the cost incurred by the appellant in undertaking the dredging channels is to be treated Plant and depreciation is allowable accordingly. . The claim of the assessee for depreciation at the rate of 15% on railway siding and channel dredging thus was allowed by the learned CIT(A), treating the same as plant for all the four years under consideration. Aggrieved by the same, Revenue has preferred these appeals before the Tribunal. 6. We heard the arguments of both the sides and also perused the relevant material on record. As regards t claim of the assessee for depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olling stock have been taken as plant and machinery and depreciation has been claimed at rates applicable to plant and machinery. To find out whether a structure is plant or building, one has to see if building or structure constituted an apparatus or tool of taxpayer by means of which business activities are carried out, or the structure played no part in the carrying on those activities but merely constituted a place wherein they were carried on. From the record we found that in the instant case all these assets are necessary and critical apparatus/tools with which the port carries on its business and are so designed to equip itself with heavy machinery such as cranes, railway wagons and slidings, heavy goods vehicles, loader, etc., and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ete set each of five types of documents such as manufacturing, drawing, processing documents, designs, charts, plans and other literature were held be a Plant. It held that articles must have some degree of durability and it should fulfil the functions of plant in assessees trading activity and should be a tool of his trade with which he carries on his business. In our opinion, the ratio of the decision of coordinate bench of this Tribunal in the case of Kandla Port Trust (supra) is squarely applicable to the issue involved in the present case relating to the assessee s claim for depreciation at 15% on channel dredging, and respectfully following the same, as also for the reasons given by the learned CIT(A) in his impugned order, with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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