TMI Blog2018 (9) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed the claim of the assessee by observing that additional plant & machinery had no separate existence and could not be utilized for any other purpose and formed integral component of the boiler and therefore, eligible for higher depreciation. Similar observation has been made by Ld. First appellate authority while arriving at the conclusion. Before us, the revenue has neither controverted the factual findings nor able to bring on record any contrary judgment to defend its viewpoint. CIT(A), in our opinion, has clinched the issue in right / proper perspective and provided relief to the assessee with due application of mind. Therefore, we find no reason to interfere with the same. - Decided against revenue - I.T.A. No. 993/Mum/2016 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same as Energy Savings Devices as per Appendix-I prescribing rates of depreciation on various assets. It was noted that the assessee purchased boilers for ₹ 68.16 Lacs but claimed depreciation on ₹ 189.76 Lacs by including the expenditure on civil work, ancillary equipments and accessories and cost of installation of these items. The higher depreciation on such additional expenditure, in the opinion of Ld. AO, was not available to the assessee since the same was available only against specific plant and equipments as prescribed in Appendix-I. Consequently, the higher depreciation on additional expenditure as claimed by the assessee amounting to ₹ 39.52 Lacs was disallowed and added to the income of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant has submitted that addition of ₹ 18976883/- has been made in the period October to March for its Etah unit and depreciation at the rate of 80% and additional depreciation at the rate of 20% has been claimed at ₹ 7580753/- and ₹ 1897688/- respectively. The breakup of the capital cost of boiler has been furnished which is as under: Sr.No. Description Value 1 Purchase of Boiler from Thermax 6509678 2 Civil job including foundation for boiler 1754157 3 Refrectory for boiler 43 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of DCIT vs Ms Vippy Solvex Products Ltd. (2007) 8 ITJ 624 (MP) is applicable to this case where in the issue was whether other components of boiler like coal container, coal conveyor, bucket elevator, dust collecting system constitute integral part of boiler to be entitled to 100% depreciation. In the case of Vippy Solvex it was held that the Tribunal did not err in extending benefit to the assessee towards depreciation at the rate of 100% on the automatic coal supply system, treating it to be a part and parcel of the boiler, and that on these items the assessee was not required to be restrict its claim to 25%. I am of the considered opinion that the ancillary equipment and accessories like chimney for boiler, conveyor system ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered the rival submissions and perused relevant material on record. Upon due consideration, we find that the relief has been provided to the assessee by Ld. first appellate authority by relying upon the decision of Hon ble Madhya Pradesh High Court rendered in DCIT Vs Vippy Solvex Products Limited [2007 8 ITJ 624]. The cited case, in turn, places reliance on the decision of Hon ble Kerala High Court rendered in CIT Vs. Cochin Refineries Limited [1988 173 ITR 461]. In both the cases, Hon ble High Courts have allowed the claim of the assessee by observing that additional plant machinery had no separate existence and could not be utilized for any other purpose and formed integral component of the boiler and therefore, eligible for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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