TaxTMI 
TaxTMI 
2014 (2) TMI 77
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....in considering the 'toners' as 'gas cylinders' and accordingly directing the Assessing Officer to allow depreciation @ 60% in chlorine toners instead of 15% applicable to plant and machinery of Caustic Chlorine Plant?" B(i) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was correct in deleting the disallowance of additional depreciation of Rs.32,29,051/- on computers installed in the factory premises, without appreciating that the computers are office appliances only whether installed in factory or office? B(ii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT has erred in not appreciating the facts that if the computers were the part of the machinery and pl....
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....of 60% as claimed by the assessee. 10. In reply, the Ld Authorized Representative for the assessee supported the order passed by the Ld CIT(A). He also submitted pictures of the cylinders being used for the purpose. These pictures show that chlorine toners look exactly like cylinders. He also filed a certificate dated 09.11.2011 signed by Shri G.K.Agarwal, Executive Director(R) in the assessee-company in which it has been certified that Chlorine Cylinders are being used for transportation of compressed Chlorine Gas generated/produced in the Caustic Soda Plant of the assessee-company. He has also certified that Chlorine Cylinders are capable of being filled up by 900 kgs net weight of Compressed Chlorine Gas. He has also certified that Ch....
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.... such gas and is used either for transportation or storage would satisfy the requirement of being a gas cylinder. In our considered view, chlorine toners used by the assessee are essentially and in substance nothing but gas cylinders. The Ld.CIT(A) has rightly treated them as gas cylinders and accordingly allowed depreciation at the rate of 60%. In this view of the matter, his order in this behalf is confirmed. Resultantly the appeal filed by the Revenue is dismissed." 6. Having heard learned counsel for the parties and having perused the materials on record, we see no reason to interfere. Admittedly, the toners are being used for storage and transportation of chlorine gas generated in the plant of the assessee. Certificate of the expert....
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.... all the attributes of a cylinder, which was rejected by the Revenue on the ground that since the so-called cylinders were merely containers and were mounted on trucks, the assessee therein was entitled to depreciation at the rate of 25 per cent as eligible to "plant and machinery". While deciding the issue whether the item claimed by the assessee therein is gas cylinders or machinery, the Division Bench has found that there is no dispute that the item in question was gas cylinder, though no doubt a big one and that the expression "gas cylinders" used in Appendix I to the Income-tax Rules does not mention the size of the gas cylinders nor does it say that gas cylinders should be only for cooking purpose or for any other particular purpose a....
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....of applicable law. It cannot be said as a universal proposition of law that computers are always used only in offices and not for manufacturing activities. The finding of fact recorded by the Ld CIT(A) has not been rebutted before us. We are in agreement with the view taken by the Ld.CIT(A) in this regard. His order in this behalf therefore confirmed. Ground NO.2 taken by the Department is dismissed." 11. We cannot find any fault with the observations of the Tribunal while confirming the view of CIT(Appeals) that there cannot be universal preposition of law that computers are used only in offices and not for manufacturing activities. The insistence of the Assessing Officer that the same should therefore be treated as office appliance can....