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<h1>Classification of Machinery for Depreciation: High Court emphasizes electric motor presence. Detailed investigation needed for accurate classification.</h1> The High Court of Madras addressed the classification of machinery for depreciation under the Income Tax Rules, focusing on whether an offset press ... Electrical Machinery, Special Rate Issues:1. Interpretation of the term 'other electrical machinery' for the purpose of depreciation under the Income Tax Rules.2. Determination of whether machinery operated by electricity qualifies as 'electrical machinery' for depreciation calculation.3. Analysis of the criteria to classify machinery as 'electrical machinery' based on the presence of an in-built electric motor.4. Assessment of the ITO's rejection of depreciation claims without proper investigation into the nature of the machinery.The High Court of Madras addressed multiple cases concerning the classification of machinery for depreciation purposes under the Income Tax Rules. The core issue revolved around whether the offset press qualified as 'other electrical machinery' as per the relevant entry in the Schedule to the I.T. Act. The court examined various cases where the assessee claimed higher depreciation rates based on the machinery being electrically operated. The court emphasized the distinction between 'electrical machinery' and 'electrically operated machinery,' highlighting that the presence of an in-built electric motor is crucial for classification. The judgment clarified that machinery with an integral electric motor constitutes electrical machinery, while mere attachment of electrical devices does not suffice for classification. The court critiqued the lack of detailed investigation by the ITO in assessing the nature of the machinery, prompting a remand for a thorough examination. Consequently, the court left the references unanswered, directing the Tribunal to gather necessary details from the assessee for a comprehensive review. The judgment underscored the importance of scrutinizing the machinery's composition to determine its classification as 'electrical machinery' for depreciation calculation under the Income Tax Rules.---
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