TaxTMI 
TaxTMI 
2016 (6) TMI 562
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....e view taken by the Assessing Officer and the CIT (Appeals). At the time of admitting this appeal, this Court framed the following substantial question of law. "Whether, on facts and in the circumstances of the case and in law, the Appellate Tribunal was right in allowing the depreciation disallowed on Pollution Control Equipments interpreting the word "being" used in Appendix-I of the I.T.Rules as illustrative in nature, ignoring the fact that the assets eligible for depreciation @ 100% are specifically included under the head "Water Pollution Control Equipments" and that except the assets mentioned in (IA), (2) and (3) of Item No.III of Appendix-A, the remaining Plants & Machineries are eligible for depreciation @ 25% ?" 2. Counsel ....
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....l) assets worth Rs. 3,62,16,971/- are covered in the block of 100% depreciation out of total addition of Rs. 4,73,69,089/- shown by the assessee as pollution control equipment. It is also mention in the report that other equipment and machineries etc. which are thought not strictly covered in 100% block of IT rules but they function with main plant. I have gone through the report of General Manager (Technical) as well as names of the items shown by the assessee as pollution control equipment and find that only plant & machineries worth Rs. 3,62,16,971/- are allowable depreciation @ 100% (50% is allowed as the assets worked for less than 180 days) and on rest of the assets, depreciation is allowed at the normal rate applicable to plant an....
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.... assessing officer has allowed the depreciation as per the above report. 13.1 The authorised representative of the appellant has submitted that though the balance machineries are not strictly covered in the 100% block of I.T. Rules, but they function with the main plant and therefore, depreciation at the rate of 100% should be allowed on the entire assets. 13.2 I have considered the submissions made in this regard. The assessing officer has discussed the matter in detail. It is observed that the report of the technical expert was filed by the appellant itself and the assessing officer has allowed 100% depreciation on the equipments and machineries as mentioned in the above report. Now the appellant comes with the plea that the balance....
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....ered as a heavy motor vehicle, would clearly fall within the expression "motor lorries" (which means motor trucks) in entry IIIE (1A) of the Table in Appendix I under rule 5 of the Income-tax Rules, 1962, since it was used by the assessee in its business of running the crane on hire. The assessee was entitled to depreciation at the rate of 40 per cent on the mobile crane." 4. We have heard Mr.Parikh, learned advocate for the appellant and Mr.Soparkar, learned advocate for the respondent. We have also gone through the documents produced on record. It is true that there are certain items referred in Rule 2, (v) of Appendix-A, which are eligible for 100% depreciation. Rule 2 (v) provides as under:- "(2) (i) ........ (v) Water pollutio....