High Court Upholds ITAT's Decision on Depreciation Method; Appeal Dismissed

The High Court condoned a delay of 339 days in re-filing the appeal based on the reasons provided in the application. Regarding the justification of amortisation of spares by the Assessee, the ITAT upheld the CIT(A)'s findings in favor of the Assessee, noting the consistent use of the straight-line method for depreciation on spares. The High Court affirmed this decision, stating no substantial question of law arose, leading to the dismissal of the appeal by the Revenue.

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Issues:
1. Delay in re-filing the appeal.
2. Justification of amortisation of spares by the Assessee.

Issue 1: Delay in re-filing the appeal
The High Court condoned a delay of 339 days in re-filing the appeal, as per the application's reasons. The delay application was disposed of accordingly.

Issue 2: Justification of amortisation of spares by the Assessee
The appeal by the Revenue was against an ITAT order dated 9th February, 2018, for the Assessment Year 2005-2006. The main question raised was whether the ITAT was correct in affirming the CIT(A)'s findings regarding the Assessee's claim for amortisation of spares not being excessive. The ITAT observed that the Assessee consistently used the straight-line method for depreciation on spares. Due to the rule of consistency, the ITAT did not see any reason to interfere with the CIT(A)'s decision in favor of the Assessee. The High Court also upheld this decision, stating that no substantial question of law arose, and consequently, the appeal was dismissed.

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