TMI Blog2014 (8) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... ring advantage but intended to enable the assessee to carry on its business more efficiently and profitably leaving the fixed capital untouched. In such situation, the expenditure was allowed as revenue expenditure. Thus we are of the view that the expenditure incurred for construction of Express Feeder on behalf of Maharashtra State Electricity Board was deductible as revenue expenditure. - Decided in favour of assessee. Disallowance of additional depreciation on Racks, Trolley, D.G. Set, Air Conditioner for Machinery, Cooler, Refrigerator, Camera, Computer Attendance Card System, Wall Mounting fans and Electrical fittings - deduction shall not be allowed in respect of the plant which was previously used within or outside India by any other person, machinery or plant installed in any office premises or any residential accommodation including in the nature of guest house, any office appliance or road transport vehicles or any machinery or plant, the whole of the cost of which is allowed as deduction by way of depreciation or otherwise - HELD THAT:- Applying the tests laid down by the Hon ble Supreme Court in Scientific Engeering House Pvt. Ltd. [ 1985 (11) TMI 1 - SUPREM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after referred to as BSEB) claimed by the assessee as a revenue expenditure treating the same as capital expenditure of ₹ 1,09,22,758/-. 3. The matter was carried before first appellate authority, wherein the various contentions were raised on behalf of assessee and having considered the same, the CIT(A) has held that the expenditure of ₹ 1,09,22,758/- for construction of Express Feeder not as a revenue expenditure. The CIT(A) further held that the Assessing Officer was justified in making addition of ₹ 95,57,413/- after allowing depreciation. Accordingly, the addition of ₹ 95,57,413/- was confirmed by the CIT(A). The same has been opposed before us on behalf of the assessee and raised factual and legal contentions, inter alia, submitted that the CIT(A) was not justified in confirming ACIT contention that expenditure amounting to ₹ 1,09,22,060/- incurred for constructing the Express Feeder on behalf of Maharashtra State Electricity Board ( BSEB ) is not deductible as a revenue expenditure. On the other hand, the learned Departmental Representative has supported the order of authorities below. 4. After going through the rival submissions and mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f above feeder along with the assessee has not claimed the expenditure as revenue expenditure. However, third beneficiary has claimed the same as revenue expenditure which was not disturbed by the Revenue authorities. These undisputed facts emerged from that the assessee along with two parties have entered into a contract with MSEDCL for erection of express feeder line for regular and uninterrupted supply of power for manufacturing activity. We find that the Hon ble Delhi High Court in the case of CIT vs. Dart Manufacturing India (P) Ltd. (2008) 175 Taxman 6 (Del) has held that the payment to State electricity board for installing a transformer and LT Lines for supply of electricity Ownership of the transformer and the LT Lines remained with the electricity board and the fixed capital structure of the assessee remained untouched Expenditure incurred by the assessee allowable as revenue expenditure. We find that the above said decision in Dart Manufacturing India (P) Ltd. (supra) was rendered following the decision of Delhi High Court in the case of CIT vs. Saw Pipes Ltd. (2008) 300 ITR 35 (Del), wherein the expenditure on laying electric service lines for new unit and that may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he circumstances of the case, the CIT(A) is correct in holding that the assessee is eligible for claiming additional deprecation on Racks, Trolly, Air Conditioner, Water Cooler/ Refrigerator, Camera, Computer attendance and Card/System, Wall Mounted Fan, D G Set and Electrical Fitting, specifically when these items does not come under plant and machinery. 3. The order of the AO be restored and that of the CIT(A) be vacated. 4. The appellant craves leave to add, amend or alter any grounds of appeal. 11. The Assessing Officer made addition of ₹ 18,05,951/- on account of disallowance of additional depreciation on Racks, Trolley, D.G. Set, Air Conditioner for Machinery, Cooler, Refrigerator, Camera, Computer Attendance Card System, Wall Mounting fans and Electrical fittings. In appeal the CIT(A) granted relief to the assessee and the same has been opposed on behalf of Revenue, inter alia, stated that the CIT(A) was not justified in deleting the addition of ₹ 18,05,981/- made on account of disallowance of additional deprecation on Racks, Trolly, Air Conditioner, Water Cooler/ Refrigerator, Camera, Computer attendance and Card/System, Wall Mounted Fan, D G Set and El ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive office of the assessee constituted plant and machinery for the purpose of granting depreciation u/s.32 of the Act. On reference, the Hon ble High Court held that the expression plant has been given an extended meaning even to include vehicles, books, scientific apparatus, etc. used for the purpose of business or profession. It does not define plant as such. It has to be construed in the popular sense. So construed, plant will mean and include apparatus used by a businessman for carrying on his business. It is not confined to apparatus used for mechanical operations or processes or industrial business. Applying the tests laid down by the Hon ble Supreme Court in Scientific Engeering House Pvt. Ltd. vs. CIT (1986) 157 ITR 86 (SC) to the facts in the instant case, it could be said that the fans installed in the administrative office of the assessee constituted plan and machinery for the purpose of granting depreciation u/s.32 of the Act. We also find that the Hon ble Delhi High Court in the case of CIT vs. Delhi Air Port Service (2002) 255 ITR 91 (Del) has held that air conditioner fixed in a bus is an integral part of the bus and therefore depreciation on such air conditioner is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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