Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (6) TMI 983

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... and sockets. Merely because after the manufacture, the consumer may be having plastic wires and circuits installed in such plastic switches and sockets, so as to make them functional, would not take away the basic character of the appliances being plastic goods. The assessee was exclusively involved in manufacturing such goods. Factory of the assessee was therefore, plastic goods factory. The moulds used for manufacturing such goods, therefore, qualify for higher rate of depreciation under subclause( vii) of clause(3) of Entry III in PartA in the New Appendix I @ 30%. - Decided in favour of assessee - TAX APPEAL NO. 747 of 2015 - - - Dated:- 21-6-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE APPELLANT : MR KM PARIKH, ADV .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... and sockets. These switches and sockets are therefore, by very nature plastic products. Since some moulds are used in factory manufacturing plastic goods, higher rate of depreciation of 30% prescribed under subclause( vii) of clause (3) of Entry III in PartA in the New Appendix I, effective from assessment year 2006-2007 would apply. 3. The Assessing Officer was however, not convinced. He disallowed higher rate of depreciation and reduced the depreciation at the rate of 15% making the following observations : I have considered the submissions of the assessee. However, for the same reasons as recorded in the assessment order for A.Y. 2004-05 2005-06, the same are not acceptable. It is further stated that the final products of the co .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... reciation. CIT(Appeals) and the Tribunal therefore, committed an error. 6. On the other hand, learned counsel Shri Tushar Hemani for the assessee submitted that the assessee admittedly manufactured electric switches and sockets made exclusively from plastic. Moulds are therefore, used for manufacturing of plastic goods. He submitted that merely because later on electric circuits and wires are inserted in these appliances, would not take away its basic character. 7. Having heard learned counsel for the parties and having perused the documents on record, we notice that subclause( vii) of clause(3) of Entry III in PartA in the New Appendix I, reads as under: (vii) Moulds used in rubber and plastic goods factories 8. Thus for moul .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates