TMI Blog2007 (3) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose. Apart from the fact that there was no other purpose for the use of this machinery in the assessee s Company, the further fact that these were integral components of the boiler, strengthens the view that they also become eligible to 100 per cent depreciation as was allowed in the case of Cochin Refineries Ltd.[ 1987 (1) TMI 9 - KERALA HIGH COURT] . We are, therefore, of the view that the questions formulated in this case should be answered in favour of the assessee and against the revenue. We accordingly hold that the Tribunal did not err in extending benefit to the assessee towards depreciation at the rate of 100 per cent on the automatic coal system, treating it to be a part and parcel of the boiler, and that on these items the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lers and furnaces: ( a)Ignifluid/fluidized bed boilers ( b)Flameless furnaces and continuous pusher type furnaces ( c)Fluidized bed type heat treatment furnaces ( d)High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers). 3. The appeal relates to the depreciation provided on the boilers and furnaces in clause (d) relating to the high efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers). 4. The core question which has been raised by the learned counsel for the revenue is that although High efficiency boilers in the assessee s concern is entitled to 100 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68,560. The Company is engaged in the manufacture of Soya Oil in which it had installed a fluidized bed type boiler in the assessment year 1992-93. Thereafter the Company procured coal container, coal conveyer, bucket elevator and dust collecting system for better utilisation of the boiler and claimed 100 per cent depreciation i.e., ₹ 48,84,796. Except for the insulating material, the Assessing Officer by his order dated 26-2-1996, rejected the claim for 100 per cent depreciation. The assessee appealed to the Commissioner of Income-tax (Appeals) against the order of the Assessing Officer and the appeal was allowed. Further appeal to the Income-tax Appellate Tribunal was dismissed by the Tribunal in the light of the judgment of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the further fact that these were integral components of the boiler, strengthens the view that they also become eligible to 100 per cent depreciation as was allowed in the case of Cochin Refineries Ltd. ( supra). We are, therefore, of the view that the questions formulated in this case should be answered in favour of the assessee and against the revenue. We accordingly hold that the Tribunal did not err in extending benefit to the assessee towards depreciation at the rate of 100 per cent on the automatic coal system, treating it to be a part and parcel of the boiler, and that on these items the assessee was not required to restrict its claim to 25 per cent. 8. In the result both these appeals are dismissed, but with no order as to cost ..... X X X X Extracts X X X X X X X X Extracts X X X X
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