Court affirms Tribunal's ruling on cold storage plant as renewable energy device, allowing 30% depreciation

The High Court upheld the Tribunal's decision in favor of the assessee, ruling that the cold storage plant qualified as a renewable energy device, allowing depreciation at 30% as per Income-tax Rules. The Court directed the opinion to be transmitted to the Tribunal without costs, with Judge Barin Ghosh concurring with the decision.

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Issues:
Whether the Tribunal was justified in allowing the assessee's appeal against the Commissioner of Income-tax's order under section 263 regarding depreciation rate for a cold storage plant.

Analysis:
The Commissioner of Income-tax set aside the assessment orders and directed a fresh assessment, reducing the depreciation rate from 30% to 15%. The assessee appealed to the Tribunal, which upheld the Assessing Officer's view. The Tribunal considered a certificate from a chartered engineer stating the cold storage as a renewable energy device. This certificate led to the Tribunal's decision to allow depreciation at 30%, as per the Income-tax Rules. The Tribunal's decision was based on factual evidence and not arbitrary.

Conclusion:
The High Court, concurring with the Tribunal's findings, answered the question in favor of the claimant, stating that the cold storage qualified as a renewable energy device. The Court directed the opinion to be transmitted to the Tribunal without costs. Judge Barin Ghosh agreed with the decision.

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