1980 (7) TMI 132

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.... at Jabalpur. In the construction of buildings, the assessee had to use shuttering plates, which are steel plates used for casting RCC and RVC roofs. The assessee claimed depreciation on such plates at the rate of 30 per cent applicable to "Concrete pipes manufacture moulds" appearing as item No. D(2) under the heading III "Machinery and plant" in Appendix I Part I framed under Rule No. 5 of the IT Rules. The ITO did not accept this plea of the assessee as it is not a manufacturer of concrete pipes. Accordingly, he allowed the assessee only the general rate of 10 per cent applicable to machinery and plant, in general. 3. On appeal by the assessee, the CIT (A) observed that no separate rate has been specified in the depreciation schedule ....

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.... rate of depreciation has been prescribed in the Appendix for such plates, only the general rate of 10 per cent applicable to machinery and plant could be allowed. 6. We have considered the contentions advanced from both sides. Appendix I part I of the IT Rules lays down rates of depreciation for various kinds of assets used by an assessee, for purposes of his business, keeping in view the expected life of each of the assets and the nature of the use to which it is pout Thus, in the case of long-lasting assets such as first class buildings, having a long expectancy of life the rate of depreciation prescribed is 2.5 per cent whereas for second class buildings and third class buildings with lesser life expectancy rates of 5 per cent and 7.....

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....t in Item No. D(1C) under the Head III Machinery and Plant in Appendix as provided for I part I to the IT Rules. The assessee's contention in this regard is accepted and the ITO is directed to allow depreciation on the shuttering plates at 30 per cent. 8. The next contention is to the effect that the CIT (A) was wrong in sustaining an addition of Rs. 10,893 as additional income on the sale of empty bags, in view of the fact that the income of the assessee has been determined by applying a flat rate of the contract receipts. Apparently, the books of account maintained by the assessee have not been accepted by the Revenue authorities and the assessment has been completed, in the same manner as a best judgment assessment, by estimating a fl....