TMI Blog2014 (2) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... larly in the light of para 3.6 of Circular No. 8 of 2008. Accordingly we set aside the order of the Ld. CIT(A) and direct the Assessing officer to allow additional depreciation - Appeal of the assessee is allowed. - ITA No. 523/Chd/2013 - - - Dated:- 26-2-2014 - SHRI T.R. SOOD, ACCOUNTANT MEMBER AND Ms. SUSHMA CHOWLA, JUDICIAL MEMBER For the Appellant : Shri Ashwani Kumar For the Respondent : Shri Manjit Singh ORDER PER T.R. SOOD, A.M This appeal is directed against the order dated 20.3.2013 of the Ld CIT(A), Patiala. 2. In this appeal the assessee has raised the following ground: That order passed u/s 250(6) of Income -tax Act, 1961 by the Ld. CIT(A) Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the assessee vide para 4.2 which is as under: I have gone through the submission made. The entire discussion hinges around the only issue whether new machinery has been acquired or installed for claim of depreciation u/s 32(1)(iia). In the rolling business the rolls are used as part of one machinery through which the ingots are pressed and moved to get final product. These are consumable items and keep on getting replaced as and when worn out while the main machinery is intact. The rolls do not constitute a machinery as it is of no use without the attendant set of items used to make the rolling machine i.e to say that the rolls can not be considered as machinery to be used in conjunction with other machinery as the rolls in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii) : Provided that no deduction shall be allowed in respect of- (A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (C) any office appliances or road transport vehicles; or (D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l under taking and the condition of expansion in installed capacity. Depreciation rates have been modified through a Notification dated 28th February, 2005. The modified depreciation rates are effective from the assessment year 2006-07. Among other things, the rate of depreciation on plant and machinery has been reduced from 25% to 15%. The above clearly show that when ever new plant Machinery is acquired or installed, additional depreciation is to be allowed. The conditions relating to allowance of additional depreciation in that case of new industrial undertaking has been dispensed with Finance Act, 2005 w.e.f. 1.4.2005. It cannot be doubted that rolls are part of machinery that is why normal depreciation of 80% has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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