2014 (2) TMI 1111

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d on allowing the amount of 100% depreciation on pollution control equipment amounting to Rs.1,41,19,671/-. 2. We have heard learned Counsel for the assessee and learned D.R. Learned Counsel also placed on record the details of pollution control equipment which were placed before the authorities along with the certificate issued by Chemical Engineer and Chartered Engineer, which was placed before the learned CIT(A) in support of claim on pollution control equipment. 2.1. Briefly stated, assessee is in the business of manufacture and sale of pesticides. It claimed inter alia, deduction of Rs.57,38,293/- ie. R & D expenditure incurred to the extent of Rs.45,96,143/- and capital expenditure of R & D to the extent of Rs.11,42,150/-. In th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....T(A) while allowing the claim of depreciation at 100% on the pollution control equipment however, did not allow the claim under sections 35(2AB)/ 35(1)(ii) of the Act holding that A.O. correctly disallowed the claim. 4. At the outset, learned Counsel for the assessee and learned D.R. fairly admitted that the issue of claim under section 35(2AB) was considered by the ITAT in earlier year and the claim was allowed. Further, it was fairly admitted that in the earlier year, the certificate was not furnished before the authorities and therefore, the matter was remitted to the authorities for verification whereas, in this year, the certificate was furnished before the authorities. Further, it was pointed out that under the Rules of Delegation,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee. To that extent, assessee's grounds are allowed and A.O. is directed to work-out the deduction as claimed and allow the same. 6. As far as the issue of 100% depreciation on pollution control equipments, the findings of the learned CIT(A) is as under : "8.2. I have gone through the assessment order, submissions of the appellant and the evidences filed. It is the claim of the appellant that their manufacturing process and effluent treatment was under strict vigilance from pollution angle from the pollution monitoring agency and to comply with the norms set, they have to include certain equipment for pollution control. The Consent for Operations certificate issued by APPCB indicates the various treatments/norms to be follow....