2016 (6) TMI 983

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....% as against 15% allowable on the moulds used for manufacturing electric and electronic goods by treating the manufacturing facility of the assessee as rubber and plastic goods factory in terms of AppendixI to rule 5 of the Income Tax Rules, 1962 ?" 2. The question arises in the following background. Respondent assessee is engaged in manufacturing plastic switches and sockets which are used as electrical appliances. For the assessment year 2006-2007, the assessee had filed return of income in which the assessee claimed depreciation of Rs. 1.57 crores on the dyes and moulds used for manufacturing such switches and sockets at the rate of 30%. The Assessing Officer during the assessment proceedings questioned the assessee's claim of hig....

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....industries specified in the relevant appendix reflecting depreciation rates. In view of this position of fact, the claim of the assessee for considering depreciation allowance @ 30% on moulds and dies fail because it does not answer the description of a plastic goods industry. Therefore, the assessment orders for A.Y. 2004-05 & 2005-06 are relied upon to state the case of revenue for restricting the depreciation on Dies & Moulds at 15% instead of 30% claimed by the assessee." 4. The assessee carried the matter in appeal. CIT(Appeals) allowed the assessee's appeal relying on the decision of Tribunal of Bangalore Bench, upon which, the Revenue approached the Tribunal. The Tribunal dismissed the Revenue's appeal. Hence this tax appe....