TaxTMI 
TaxTMI 
2016 (6) TMI 926
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....e first issue to be decided in this appeal of assessee is as to whether the assessee is eligible for claiming additional depreciation of Rs. 2,89,58,125/- in respect of plant and machinery acquired during the year which was utilized in the sales outlet of the assessee, in the facts and circumstances of the case. 2.1. The brief facts of this issue are that the assessee is a manufacturer and retailer of apparels. The Ld. AO observed that assessee had claimed additional depreciation of Rs. 2,89,58,125/- on plant and machinery added during the year u/s. 32(1)(iia) of the Act. The said plant and machinery was installed at the sales outlet in the retail division of the assessee. Hence, the AO held that assessee is not entitled for additional dep....
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.... to the extent of Rs. 40,23,340/- only and not deleting the balance amount of Rs. 2,49,34,785/-. 2. For that in the facts and circumstances of the case, the Ld. CIT(A) erred in observing that additional depreciation u/s. 32(iia) is allowable only on Plant and Machinery used for the manufacturing process. In fact, the act only required that the assessee should be engaged in the business of manufacturing and the Plant & Machinery shouldn't be installed at residential accommodation or office premises. The act doesn't postulate disallowance of additional depreciation on Plant & Machinery installed at retail outlet of a manufacturing company." 2.3. The Ld. AR reiterated the same submissions as submitted before the lower authorities. In addit....
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....r the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing (or in the business of generation or generation and distribution of power), a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii). Provided that no deduction shall be allowed in respect of - (A) Any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (B) Any machinery or plant installed in any office premises or any residential accommodation , including accommodation in the nature of a guest -house; or (C) Any office appliances or road transport vehicles; o....
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....s. 1,62,44,795/-) requires to be disallowed and added to the total income of the assessee. The Ld. CIT(A) verified the income tax depreciation rates and found depreciation at 80% is provided on Renewable Energy Device - (m) and any special device including electrical generators and pumps running on wind energy. The Ld. CIT(A) observed that in order to be eligible for depreciation at 80%, such electric generator should run on wind energy and even otherwise , electric generator is not renewable energy device. Accordingly, he upheld the depreciation allowed by the AO at 15% as against 80% claimed by the assessee. Aggrieved, the assessee is in appeal before us on the following ground: "3. For that in the facts and circumstances of the case....
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....an High court in the case of Agarwal Transformers Pvt. Ltd., supra wherein it was held as under: ".....In order to appreciate the controversy involved, it will be convenient to extract the relevant entry at clause (xiii) of item 10A of Appendix I appended to Income-tax Rules, which reads as follows: "Any special devices including electric generators and pumps running on wind energy." 3, According to the rules of construction, where two or more words which are susceptible of analogous meaning are coupled together noscitur a sociis, they are understood to be used in their cognate sense. They take, as it were, their colour from each other, the meaning of the more general being restricted to a sense analogous to that of the less general. T....