9911796707
TMI Blog2009 (11) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... The brief facts of the case are that the assessee-company purchased plant and machinery for ₹ 75,44,577/- upto 31-03-2002 which were shown under the head 'capital work in progress' during the year AY 2002-03. After 31-03-2002 the assessee purchased the plant and machinery amounting to ₹ 98,67,031/-. Thus, the assessee purchased the total plant and machinery worth ₹ 1,74,11,608/- and installed them during the assessment year under consideration after September, 2002, and claimed additional depreciation amounting to ₹ 13,05,871/-. The AO was of the view that as per the provisions of section 32(1)(iia) the assessee has to acquire and install new plant & machinery after 31-03-2002. Since the assessee has not acquired and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. So far as the plant and machinery worth ₹ 98,67,031/- are concerned, these are acquired as well as installed after 31-03-2002. So far as the machineries worth ₹ 75,44,577/- are concerned, the assessee though acquired these machineries prior to 31-03-2002, but the assessee installed these machineries after 31-03-2002, therefore, both the conditions - acquisition as well as installation are fulfilled only after 31-03- 2002 and, therefore, the assessee should be allowed additional depreciation at the rate of 15% during the year under consideration. Regarding the increase in the substantial installed capacity, it was pointed out that there is substantial increase in the installed capacity of the assessee by more than 25%. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used are "acquired and installed", therefore, both the conditions must be satisfied for the claim of additional depreciation. The machineries must have been acquired as well as installed. The machinery can be said to have been acquired and installed after 31-03-2002 if the machinery is installed after 31-03-2002. There is no dispute so far as the machinery worth ₹ 98,67,031/- are concerned. The machinery has been purchased by the assessee after 31-03-2002 and installed after 31-03-2002. The machinery of ₹ 75,44,577/- though purchased by the assessee before 31-03- 2002 but since installed after 31-03-2002, the last condition of installation of the machinery is complied with only after 31-03- 2002 and, therefore, in our opinion, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect. The assessee has clearly pointed out that there was an error in the figures given under the Balance- Sheet. The figures given in the Balance-Sheet can not replace the figures specifically certified by the Chartered Accountant in the prescribed Form. We are, therefore, of the view that the installed capacity of the assessee has been increased by more than 25% and the assessee has complied with the conditions so far as it relates to the substantial increase of the installed capacity. We accordingly delete the disallowance made by the AO and direct the AO to allow the additional depreciation of ₹ 13,05,871/- to the assessee. 8 The second ground relates to the disallowance of depreciation amounting to ₹ 21,76,451/- on the new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the labour work. Thus, it was contended that the final labour bill if dated 31-3-2003 will not prove that the machinery has not been installed prior to 31-3-2003. The machinery has duly been installed and used by the assessee during the year, therefore, the assessee is entitled for the depreciation. The learned DR, on the other hand, relied on the order of the authorities below. 10 We have carefully considered the rival submissions and perused the material on record. In our opinion, merely the final bill is raised as on 31-3-2003 by the contractor does not mean that the machinery is not installed prior to that. Generally the bills are raised after completion of the job and to the satisfaction of the party. This is on record that the runnin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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