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TMI Blog2018 (5) TMI 1685X X X X Extracts X X X X X X X X Extracts X X X X ..... delay of 4 days on the part of the revenue in filing this appeal before the Tribunal. In this regard, the revenue has filed an application seeking condonation of the said delay and keeping in view the reasons therein, I am satisfied that there was a sufficient cause for the delay on the part of the revenue in filing this appeal before the Tribunal. I, therefore, condone the said delay and proceed to dispose of this appeal of the revenue on merit. 3. The assessee in the present is a company which is engaged in the business of running iron and steel re-rolling mill. The return of income for the year under consideration was filed by it on 22.09.2012 declaring a loss of Rs. 1,02,55,690/-. In the said return, depreciation of Rs. 1,94,50,129/- w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " in the earlier years, the same could not be separated subsequently as per the convenience of the assessee. He also held that the assessee's calculation of opening W.D.V. was not supported by the necessary evidence. He accordingly restricted the claim of the assessee for depreciation on rolls purchased in the earlier years to 15% which resulted in a disallowance of Rs. 1,07,65,892/-. 5. The disallowance made by the A.O. on account of its claim for depreciation at higher rate on the rolls purchased in the earlier years was challenged by the assessee in the appeal filed before the Ld. CIT(A) and after considering the submissions made by the assessee, the Ld. CIT(A) deleted the said disallowance for the following reasons given in his impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Return @ 15% instead of 80% in earlier years. That this is not a change of accounting and bifurcation or division of block of Assets is not as per convenience of the assessee and the A.O wrongly stated that assessee's calculation of opening W.D.V. of Rolls is not supported by necessary evidence, The opening W.D.V. (as per Income Tax) of Rolls was calculated in proportion the W.D.V. as on 31.03.2011 (as per Companies Act, 1956) of Rolls Rs. 1,78,73,644/- to Plant & Machinery inclusive of Rolls amounting to Rs. 4,49,17,127/-, as duly disclosed in Note-7 (Fixed Assets) of Audited Accounts of the Company as on 31.03.2012." In view of the above discussion, it is found that there is substance in the appellants' arguments that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t & machinery", the A.O. required the assessee to explain how the opening W.D.V. of the rolls was determined. In reply, it was explained by the assessee that the same was determined on pro-rate basis taking the written down value appearing in the depreciation schedule prepared for the purpose of Companies Act. This basis adopted by the assessee was not accepted by the A.O. and the claim of the assessee for higher depreciation on rolls was disallowed by him. The Ld. CIT(A) however accepted the basis adopted by the assessee and directed the A.O. to allow depreciation at higher rate on the written down value of the rolls as determined by the assessee on proportionate basis. As rightly contended by the learned DR, the Ld. CIT(A) is not justifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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