TMI Blog2015 (11) TMI 1265X X X X Extracts X X X X X X X X Extracts X X X X ..... uipments / structures installed at Jetty at its own cost. Therefore, this Tribunal is of the considered opinion that the assessee has installed a temporary structure for the purpose of its business. This temporary structure has to be construed as “building” under Old Appendix-1 Part A (1)(4). Hence, the assessee is entitled for depreciation @ 100%. Accordingly, the orders of the lower authorities are set aside. The Assessing Officer is directed to grant depreciation @ 100% on the cost of erection of temporary structure, namely, the Jetty at Ennore Port Trust. - Decided in favour of assessee - ITA No.737/Mds/2014 - - - Dated:- 14-8-2015 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years. Referring to clause 6.1 of the agreement, the Ld.counsel submitted that the period is only three years from the date of commencement of vessel loading operation. Therefore, it is a temporary structure created by the assessee for the purpose of business. Referring to subsequent agreement, a copy of which is available at page 57 of the paperbook, the Ld.counsel submitted that on 12.08.2009, the agreement dated 06.05.2004 was modified and the operation of Jetty was restricted till the Ennore Port allows the operation or for a period of three months from 24.06.2009, whichever is earlier. An option was given to the parties to extend the operation till 31.03.2010. 5. According to the Ld. counsel, the Jetty erected by the assessee is pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons on either side and perused the relevant material on record. We have also carefully gone through the Depreciation Schedule at old Appendix 1, which is applicable for 2003-04 to 2005-06. For the assessment year 2005-06, under Part-A heading tangible asset , and sub-heading I Building temporary erections such as wooden structure are falling under the classification building and 100% depreciation was prescribed. Old Appendix-1 Part A (1)(4) reads as follows:- purely temporary erection such as wooden structure . The word temporary erection was subject matter for consideration before the Cochin Bench of this Tribunal in ACIT v. Kitex Garments Ltd. 2014 (1) TMI 126. The Cochin Bench of this Tribunal, while considering the word ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that a period of three months was given from 24.06.2009 which can be extended by the consent of parties subject to the permission that may be given by Ennore Port. The object and purpose of erection of Jetty was for temporary in nature and not as a permanent establishment. Merely because an option was given to the assessee to continue till 31.03.2010 subject to export market conditions, that does not mean that the Jetty was a permanent structure. Ultimately, the assessee has to dismantle and remove all the equipments / structures installed at Jetty at its own cost. Therefore, this Tribunal is of the considered opinion that the assessee has installed a temporary structure for the purpose of its business. This temporary structure has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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