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TMI Blog2019 (3) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... fic directions issued by the Hon'ble ITAT in it's order dated 05.10.2015. The ITAT while deciding on whether Energy Meters were eligible for depreciation at the higher rate of 80% had set aside the matter to the assessing officer with a clear direction to verify whether a breakup between electronic and mechanical meters had been submitted by the appellant and after such verification to all depreciation on Electronic/Energy Meters at the higher rate 80% after allowing the assessee an opportunity of being heard. 2. That the CIT(A) erred on facts and in law in not holding that the order passed by the assessing officer whereby he proceeded to re- adjudicate the issue of depreciation on Energy Meters was in blatant violation of the binding decision/findings of the ITAT and the Delhi High Court and was therefore bad in law. 3. That the CIT(A) erred in facts and in law in holding that the assessing officer was correct in seeking a report from the Bureau of Indian Standards (BIS) in the interest of justice and based on such report in holding that the Energy Meters were merely energy measuring devices and were not energy efficient and therefore did not qualify for higher rate of depre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the CIT(A) against the various additions/disallowances made in the Assessment Order. The CIT(A) allowed the relief on a number of issues and the assessed profit for the year was determined at Rs. NIL after adjusting brought forward losses of Rs. 72,32,98,559/- vide appeal effect order dated 23/05/2016 passed u/s 215/143(3). However, the CIT (A) confirmed the disallowance held in respect of depreciation on Energy Meters. The assessee Company filed an appeal before the Tribunal against the above order of CIT (A) confirming the disallowance of depreciation on energy meters. The Tribunal in its order dated 5/10/2015 held that the assessee Company had been successfully able to demonstrate that it was very much entitled to claim depreciation on energy meters @ 80%. However, based on the observations of the CIT (DR) that more than 60% of the Company's meters were mechanical meters, the Tribunal restored the matter to the file of the Assessing Officer to verify and allow the claim of deprecation @ 80% on electronic meters/energy meters after affording opportunity to the assessee of being heard. Further, regarding the Company's claim of higher depreciation on Bus Bar Chambers @ 80%, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e restricted direction to verify and allow the claimed depreciation @80% only in respect of electronic meters/energy meters after affording opportunity to the assessee of being heard. Further, regarding the assessee's claim of higher depreciation on bus bar chambers @ 80%, the ITAT restored the issue to the file of the assessing officer to merely verify as to whether it is an intricate/integral part of meters without which the meter cannot function and accordingly allow depreciation on the same. The aforesaid order of the ITAT was subsequently confirmed by the Hon'ble Delhi High Court vide order dated 14.09.2016. In pursuance of the aforesaid order of the ITAT, the assessing officer passed the impugned order under section 254/143(3) of the Act, giving effect to the directions of the ITAT. However, the assessing officer, disregarding the specific mandate of the ITAT (affirmed by the High Court) and the bifurcation provided by the assessee, traversed beyond jurisdiction and proceeded to re-adjudicate the issue afresh based on some ex-parte report called for from the Bureau of Indian Standards (BIS). In the impugned order, the Assessing Officer, disregarding the specific directions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the meters are mechanically advanced meters which did not have any special feature. To meet out this objection and its submissions before the Learned CIT(Appeals) that most of the meters are energy saving meters, the Learned AR has referred page No. 75 of the supplementary paper book i.e. copy of the relevant extracts of the tax audit report of the assessee for the assessment year under consideration reflecting statement of particulars including bifurcation of expenses between normal meter and electronic meters. We thus set aside the matter to the file of the Assessing Officer to verify and allow the claimed depreciation at the rate of 80% on electronic meters/energy meters only after affording opportunity of being heard to the assessee. 12.5 Regarding the claimed higher depreciation on the "bus bar chamber", the Learned AR submitted that these are devices through which connection from overhead line/underground cable is provided to the meters and the said device forms integral/inextricable part of the meters without which the meter cannot function. The authorities below have denied the claimed higher depreciation on this instrument on the basis that these are not energy saving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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