TaxTMI 
TaxTMI 
2018 (9) TMI 771
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....ner of Income Tax Central Circle-40, Mumbai [AO] u/s 143(3) read with Section 147 of the Income Tax Act, 1961 on 24/02/2014 wherein the assessee has been saddled with addition of Rs. 58 Lacs on account of depreciation & additional depreciation on boiler. The sole effective ground raised under appeal reads as under:- "On the fact and in the circumstances of the case and in law, the CIT(A) erred in allowing the excess claim of depreciation of Rs. 39,52,136/- relying on the decision of the ITAT (MP) in the case of Vippy Solvex Products Ltd. (2007) 8 ITJ 624 (MP) without appreciating the fact that the ancillary equipment & accessories are not mentioned in the depreciation table which enumerates and exhausts those equipments for which d....
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.... view that higher depreciation of 80% can be allowed on the items of equipment named in the depreciation table being energy saving devices. Thus, he has allowed depreciation at higher rates on the cost of ignifluid/ fluidized bed boilers of Rs. 68,16,465/- and depreciation on other ancillary equipment and accessories, cost of civil work on installation of these items, capitalized with boiler has been allowed at normal rate of 15% applicable to plant and machinery. The AO has relied on the decision of Madras High Court in the case of CIT vs Adyar Products Co. (2009) 314 ITR 38. In that case the dispute was whether higher rate of depreciation was allowable on fluid bed drier in the category of energy savings devices. The Hon'ble Court held th....
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....s, cost of civil work on installation of these items, capitalized with boiler is to be allowed at the higher rate of 80%. I find that the case of DCIT vs Ms Vippy Solvex Products Ltd. (2007) 8 ITJ 624 (MP) is applicable to this case where in the issue was whether other components of boiler like coal container, coal conveyor, bucket elevator, dust collecting system constitute integral part of boiler to be entitled to 100% depreciation. In the case of Vippy Solvex it was held that the Tribunal did not err in extending benefit to the assessee towards depreciation at the rate of 100% on the automatic coal supply system, treating it to be a part and parcel of the boiler, and that on these items the assessee was not required to be restrict its cl....
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.... and therefore, the stand of first appellate authority was quite justified in the circumstances. 5. We have considered the rival submissions and perused relevant material on record. Upon due consideration, we find that the relief has been provided to the assessee by Ld. first appellate authority by relying upon the decision of Hon'ble Madhya Pradesh High Court rendered in DCIT Vs Vippy Solvex Products Limited [2007 8 ITJ 624]. The cited case, in turn, places reliance on the decision of Hon'ble Kerala High Court rendered in CIT Vs. Cochin Refineries Limited [1988 173 ITR 461]. In both the cases, Hon'ble High Courts have allowed the claim of the assessee by observing that additional plant & machinery had no separate existence and could ....