TMI Blog2020 (3) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... eter cannot function. The authorities below have denied the claimed higher depreciation on this instrument on the basis that these are not energy saving device - HELD THAT:- We set aside this matter to the file of the Assessing Officer to verify the above claim of the assessee that 'bus bar chamber' forms integral/inextricable part of the meters without which a meter cannot function and allow the depreciation thereupon accordingly after affording opportunity of being heard to the assessee. The ground No.1 of the appeal preferred by the assessee is accordingly allowed for statistical purposes - ITA 195/2020 - - - Dated:- 13-3-2020 - MR. MANMOHAN AND MR. SANJEEV NARULA JJ. Appellant Through: Mr. Ajinkya Tiwari, Proxy Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 25.03.2019 passed by Income Tax Appellate Tribunal (ITAT), Delhi Bench: A New Delhi in ITA No. 6225/Del/2018 pertaining to assessment year (AY) 2008-09 and ITA No. 6224/Del/2018, pertaining to AY 2007-08. The Tribunal has allowed the said appeals of the assessee along with several others, holding that the Assessing Officer (AO) had gone beyond the scope of remand as directed by the ITAT in order dated 05.10.2015. 8. On 05.10.2015, the Tribunal had held in favour of the assessee that it was entitled to depreciation at the rate of 80% on electronic meters/energy meters. The Tribunal also took note of the submission of the Revenue that more than 60% of the meters are mechanically advanced meters which did not have any special fea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and this Court has also dismissed Revenue s appeal, vide order dated 14.09.2019 in ITA 666/2016, the Tribunal should have ensured that the matter attains finality by remanding the matter back to the AO with a direction to act strictly in terms of the order of remand dated 05.10.2015. The issue as to what percentage of the meters are energy saving devices, being meters for measures of heat losses, furnace oil flow, steam flow, electric energy and power factor meters was not gone into by the AO in terms of the remand order dated 05.10.2015 and therefore the Tribunal should have ensured that the AO undertakes the said exercise and also determine whether the bus bars form an integral/inextricable part of the meters. 10. Learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee on the other hand remained that the energy meters acquired by the assessee are in the nature of energy saving equipment/devices having inter alia the following advanced features helping in conservation of energy: i) Advanced feature of automatic electric load monitor time of day (TOD) displays, which indicates consumption at the particular point of time during the day that is relevant/ helpful in collecting data and devising reliable technical solutions; ii) Electricity leakage display (ELD) indicator, which glows in case of earth leakage/ faulty wiring at customer's premises; iii) Feature of indicating the maximum demand which helps in regulating total energy load on the distribution transformers; in case th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electric energy . 12.3 The submission of the assessee that there is no further/additional condition requiring the assessee to actually establish any direct relationship of the meters with the energy saved nor the said schedule also mandate that the energy meters should be electrical or mechanical devices and merely provides that the meters should be electricity/energy measuring devices finds substance. In the aforesaid schedule, the electricity measuring meters have been recognized as energy saving devices. We also find substance in the contention of the assessee that even if meter does not have any special features, accurate measurement of energy consumption by itself results in conserving energy in as much as it enables regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 highe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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