TMI Blog2014 (10) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the assessing officer was that newly purchased machinery generated electricity which is not articles or thing, is no longer a relevant issue in the light of these decisions. From the facts narrated in the assessment order and in the appellant's submission, it is clear that appellant fulfilled all the conditions required for claim of additional depreciation on machinery purchased by it. The addition of machinery was after 31st of March 2005. Appellant was already in the business of manufacturing articles for things. The machine purchased is not covered by any clause of proviso to this section. The same was not used by any person before installation. It is not installed in office or residential premises. This is not office appliance or road transport vehicle - these machines are also not eligible for 100 percent depreciation in one year. Considering this appellant fulfils all the conditions required for claim of additional depreciation. Respectfully following the decisions of Madras High Court relied upon by the appellant, assessing officer is directed to allow additional depreciation on new plant and machinery purchased - Decided against revenue. - ITA No.947/Ahd/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration does not result in increase in production capacity, does not enhance quality or alter technical specifications of those particular products. The product registration obtained by the company does not guarantee of any sales of those products in that market/country. It is like registration of the company in India with various hospitals/government health depts. for supply of various products. This registration will only enable the company to sell their products if there are buyers or there is a demand for company's product in that country .. The company does not get the benefit of enduring nature as it may happen that after registration, the company may not be able to sell in that country for various reasons like non acceptance of the product in the domestic market, economic circumstances of that country including realization of remunerative prices, extent of competition and relative competitive position of the sellers, availability of facilities for manufacture of such product in domestic market and its cost of production, etc., domestic per capita income, consumer preferences, government policies, import duties, volume of business available, credit terms, wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as revenue and withdraw depreciation on these expenses allowed by him. 4. At the outset, we have been informed that the issue of expenditure towards project registration expenses stood covered by a decision of ITAT A Bench Ahmedabad pronounced in the case of Cadila Health Care Ltd. (ITA No.3140/Ahd/2010, A.Y. 2006-07) order dated 05.03.2012 wherein it was finally held as under: 3.12. We hereby hold that the payments in question are inextricably linked with the working of the assessee's business. By incurring those expenditure the assessee has not acquired any new right of permanent character. The licenses or the registrations are required to be renewed and therefore part of the day to day running expenditure of the business. [ACIT versus Vodafone Essar Gujarat 38 SOT 51 (Ahd.) l. If an expenditure can give a benefit which is said to be endured for one year or even annually year after year then it is unreasonable to hold that any enduring benefit taken place to the assessee. [Cosmat Max Ltd.29 SOT 436 (Del.)]. An expenditure incurred in the existing line of business in order to run the business smoothly then though the business may run smoothly in future in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Russia, Ghana and China etc. We find that the exports over the years have increased from the export sale of ₹ 26 crores in financial year 1998-1999 to the exports have grown to ₹ 160 crores in financial year 2005-06 an increase of more than 600 per cent. Accordingly, these expenses are rightly allowed by learned CIT(A) and we confirm the same. 6. Considering the submission of both the sides in the light of the case law cited and the reason given by the AO for such disallowance, we hereby hold that in a situation when the genuineness of the expenditure was not doubted by the AO but only on a technical point the impugned disallowance was made we hereby hold that the issue being directly covered by the precedents as cited above in favour of the assessee; hence, this ground of the Revenue has no force, therefore, dismissed. 7. Ground No.2 is reproduced below: 2. The Ld. CIT(A) erred in law and on facts in deleting the addition of ₹ 3,97,006/- made by the AO on account of additional depreciation on power point. 8. The AO has disallowed the assessee s claim of additional depreciation in respect of such machinery which were generating electrici ..... X X X X Extracts X X X X X X X X Extracts X X X X
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