TMI Blog2017 (11) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... losed down. Only one unit has been shut down - Decided in favour of assessee. - ITA No. 126/Kol/2016 - - - Dated:- 15-11-2017 - Shri J. Sudhakar Reddy, AM And Shri A. T. Varkey, JM For the Appellant: Shri Arindam Bhattacharjee, Addl. CIT For the Respondent: Shri Akkal Dudhwewala ORDER Per J. Sudhakar Reddy, AM This is an appeal by the Revenue directed against the order of the Commissioner of Income Tax-(A)-10, Kolkata relating to A.Y. 2005-06 on the following grounds :- 1. That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in deleting the disallowance of depreciation of ₹ 38,46,405/- on plant and machinery and on Factory Building. 2. The appellant craves leave to add/delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed on that portion of the W.D. V. of the assets which have been scrapped, after reducing the scrap value from the block of assets. This view 'is fortified by the judgments of Jabalpur Bench of the ITAT in the case of Packwell Printers, the judgment of the Ahmedabad Bench of the ITAT in the case of Inductotherm (India) Ltd. (supra) and the judgment of the Patna Bench of the ITAT in the case of Parikh Engg. Body Bldg. Co. Ltd. (supra). Therefore; in view of the decisions and interpretation of the concept of block of assets depreciation on ponds which is forming part of the block of assets has to. be allowed as deduction even though these ponds were discarded and not used. and not owned by it during the assessment years in quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of CIT Vs. Oriental Coal Co. Ltd. reported in (1994) 206 ITR 682 was squarely applicable to this case in rejecting the contention of the appellant that there was passive use of the plant and machinery of the mills for depreciation to be allowed in the lockout period. In our view the decisions relied upon by Mr .Sen support his contention. In Hindusthan Gas Industries Ltd. this court in allowing the claim of depreciation of diesel generating sets leased out for the period when the lessee's factory premises was under lock-out had taken the following view:- The business of the assessee-company was to lease out generating sets. The lease in the instant case expired on 30-11-1974 but the assessee-company did not get ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciated notwithstanding its non-user. Notwithstanding such . adverse law and order situation, the assessee did not abandon its business but suffered loss for such a state of affairs prevailing in that State over which he had no control with an expectation of resuming the business. This is not a case where the assessee himself is embroiled in a dispute with his labourers and in the process, has decided to declare a lockout expressing its intention not to run the business. Thus, taking into consideration the circumstances of the present case, we are of the view that the Tribunal below rightly granted depreciation in favour of the assessee. Our attention was not drawn to any finding to indicate that the suspension of work was actuated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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