TaxTMI 
TaxTMI 
2007 (3) TMI 746
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.... granting the benefit to the assessee towards depreciation @ 100 per cent on the automatic coal supply system treating it to be a part and parcel of the boiler ? (2) Whether system in question i.e., automatic coal supply can be treated as part and parcel of the boiler for the purpose of granting benefit of depreciation @ 100 per cent to the assessee ? (3) Whether the assessee is entitled to claim depreciation @ 25 per cent on certain items or @ 100 per cent treating it to be a boiler for the purpose of claiming depreciation @ 100 per cent ?" 2. As per the Appendix I of Schedule I, Entry No. (3)(iii) of the Income-tax Rules, 100 per cent depreciation has been provided for Energy saving devices enumerated therein. The Entry rea....
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....ndent-assessee, per contra, has pointed out that the coal container, coal conveyer, bucket elevator and dust collecting system can have no independent existence and it is for the purposes of modernisation and automation that these items were purchased and attached to the boiler and since they become an integral and inseparable part of the boiler, without having any utility otherwise, they are also entitled to depreciation at the rate of 100 per cent. 6. We have heard the learned counsel for the parties and perused the record. As per the facts of the case, as revealed in ITA No. 132/2003, the assessee is a Public Limited Company which filed return for the assessment year 1993-94 on 30-12-1993 indicating taxable income of Rs. 2,25,71,671. Th....
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....ade for depreciation in respect of waste ponds, fresh water tank, pipe racks, alloy piping, jetty facilities, cherry picker cranes, etc., as part of the Refinery. The claim was turned down by the Assessing Authority but the High Court, on the question being raised before it, came to the conclusion that the waste ponds, fresh water tank, pipe racks, alloy piping, jetty facilities, cherry picker cranes, etc., formed an integral part of the Refinery and it was entitled to a higher rate of depreciation and development rebate in that respect. In the case in hand, it has not been shown by the revenue that coal container, coal conveyer and bucket elevator, dust collecting system can individually be utilised for any other purpose. Apart from the fa....