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TMI Blog2018 (12) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... d together and are being disposed of by this consolidated order for the sake of convenience. 3. The appeals of assessee were fixed on various dates and even the acknowledgement of service of notice is available on record. The assessee on one of the dates of hearing i.e. 23.05.2018 moved an application for adjournment. However, on all the other dates of hearing i.e. starting from 09.01.2018, 15.03.2018, 25.07.2018, none appeared on behalf of assessee, though notices were issued to the assessee. As pointed out earlier, even acknowledgements of service of notice are available on record. The appeal was last fixed for hearing on 03.12.2018. However, none appeared on behalf of assessee nor any application was filed for adjournment. Hence, we pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim the depreciation. The assessee claimed that the additional depreciation was available to the assessee in succeeding year till the WDV of machinery becomes nil and section does not say that it was only in the year in which the new machinery was installed. The assessee had purchased new machinery in assessment years 2005-06, 2006-07, 2007-08 and 2008-09 and the same were installed in the same year/s only. However, the Assessing Officer noted that new machinery was purchased in assessment year 2009-10 was of only Rs. 2,19,740/- and he observed that the contention of assessee was misconceived and legally untenable. The Assessing Officer denied the claim of deduction, against which the assessee filed an appeal before the CIT(A), who upheld t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said clause that no deduction shall be allowed in respect of any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person or any machinery or plant installed in any office premises or any residential accommodation. Further, no such deduction of additional depreciation is allowable against any office appliances or road transport vehicles or any plant & machinery, the whole cost of which was allowed as deduction, in computing income chargeable under the head Profits & Gains of the business of any previous year. The requirement of the section is that new plant or machinery, which has not been used by any other person, and which has not been installed in any office or resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and consequently, the income was revised in the hands of the assessee after making an addition on account of excess depreciation of Rs. 24,54,934/-. The CIT(A) allowed the claim of assessee by observing that whether the additional depreciation was available only in the first year of acquiring the plant & machinery or not, was a debatable issue and the same could not be dealt with under section 154 of the Act. 10. In the facts of the present case, the assessee had claimed additional depreciation on account of plant & machinery purchased by the assessee in the preceding year. Since the said machinery was purchased for less than 180 days in assessment year 2008-09, the additional depreciation was claimed @ 20%. However, in the year under a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order passed by the Assessing Officer is amenable to rectification under section 154 of the Act. In view thereof, we uphold the invoking of provisions of section 154 of the Act against the assessee. Further, in view of the concession made by the learned Authorized Representative for the assessee, where the assessee was only entitled to 10% of the cost of machinery to be allowed as additional depreciation in the instant assessment year, since the balance 10% of cost of machinery has been allowed as additional depreciation in the preceding year, we reverse the order of CIT(A) and direct the Assessing Officer to allow depreciation @ 10% of the cost of machinery at Rs. 1,22,74,673/- as additional depreciation on plant & machinery purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
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