TaxTMI 
TaxTMI 
2015 (11) TMI 730
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....see partly allowed the appeal. While partly allowing the appeal, ld. CIT(A) allowed the additional depreciation. After considering the submissions deleted the disallowance of depreciation on wind electric generator of Rs. 12,17,06,979/-, depreciation on computers of Rs. 21,17,661/- and depreciation on tonners which was plant and machinery of Caustic Chlorine Plant. At the outset, ld. Counsel for the assessee submitted that these issues are covered in favour of assessee by the decision of Co-ordinate Bench and confirmed by the Hon'ble Jurisdictional High Court in Tax appeal No.942 of 2013. On the contrary, ld. CIT DR supported the order of Assessing Officer. 4. We have heard the rival contentions and perused the material on record. The Hon'ble Gujarat High Court in Tax Appeal No.942 of 2013 formulated the following questions: "A. Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in law 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?" ....
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....ord, 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 experts also indicated that the same was a gas cylinder. Reference is also made to the Gas Cylinders Rules where the term Gas Cylinder" has been defined as closed metal container having volume exceeding 500 millilitre but not less than 1000 litres intended for storage and transportation of compressed gas including Liquefied Petroleum Gas (LPG). 7. We notice that such an issue was considered by two High Courts of the country and held in favour of the assessee. Reference in this regard may be made to the decision of the Delhi High Court in the case of Commissioner of Income-Tax vs. Goyal MG Gases Ltd. reported in [2008] 296 ITR 72 (Delhi), where it was observed that "if we interpret the expression "gas cylinder" to mean "cooking gas cylinder", we will be really adding words to the statute which is not permissible.". Relying on the said decision of the Delhi High Court in the case of Commissioner of Income-Tax vs. Goyal MG Gases Ltd. (supra), the Division Bench of Madras High Court in the case of Co....
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....g that the computers are office appliances only whether installed in factory or office, has decided this question in para 10 to 11 as under: "10. Coming to the second question, facts are that during the previous year relevant' to the Assessment Year 2007-08 the assessee installed certain computers in its factory premises and claimed depreciation available to computers. The Assessing Officer, however, held that the computers should be treated either as office appliances failing which they would form part of the plant and machinery. In either case, right of depreciation would be 20% and and not 60% as claimed by the assessee. The assessee carried the matter in appeal. CIT(Appeals) reversed the decision of the Assessing Officer. In further appeal by the Revenue before the Tribunal, decision of the CIT(Appeals) was confirmed in following terms:- "50. We have heard both the parties in our opinion, the Ld CIT(A) has correctly analyzed the facts and decided the issue in the light 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 th....
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....ions shall be allowed - (i) ........... (ii) ............ (iia) any new machinery or plant (other than ships and aircraft), which has been acquired and installed after 31st day of March 2005 by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty percent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii)" Additional depreciation @ 20% of actual cost of new machinery installed after 31.3.2005 by an assessee engaged in the business of manufacture or production of any article or thing is therefore available under clause (ii) of section 32(1). Appellant company is engaged in the business of producing chemicals such as Caustic Soda/Caustic Potash and had installed new machinery, i.e. wind electric generator after the prescribed date during F.Y. 2007-08. On being asked, appellant informed that it had claimed depreciation on wind electric generator under clause (ii) of section 32(1) and not clause (i) or section 32(1). Appellant filed copy of computation of income and depreciation chart in this regard. Additional depreciation @ 20% of the actual....
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....eration of power by more than 50 per cent, then the view taken by the authorities is that the increase of the capacity should have been in the business of investment castings is not correct on the premise that when the assessee was already generating power for selling to electricity board then the installation of new windmills has definitely increased the capacity of the assessee in generation of power and is covered under the conditions prescribed under section 32(1)(iia). In order to give the relief sought for by the assessee the Tribunal relied on its own decision in the case of Hi Tech Aral Limited in which the Tribunal has held as follows: "8. After considering the rival submissions and material on record, we note that the Assessing Officer has disallowed the claim of the assessee on the ground that the assessee is basically generating the electricity by wind mills for its own consumption and it is not the business of the assessee. Therefore, the assesses is not entitled for additional depreciation on wind mills, under section 32(1)(iia). On appeal, the Commissioner of Income-tax (Appeals) has allowed the claim of the assessee on the ground that it is not essential th....