AI Drafter 
TaxTMI 
TaxTMI 
2019 (1) TMI 594
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....as culled out from the records are that the assessee is a Private Limited Company engaged in the business of manufacturing of Dies, Roller Shell, Machineries and Feed & Grain Plant equipment. Loss of Rs. 35,73,286/- declared in the e-return of income filed on 29.09.2011 which was further revised on 22.09.2012. Case picked for scrutiny and necessary notices u/s 143(2) and 142(1) of the Act were duly served upon the assessee. Apart from the additions for unexplained cash credit of Rs. 28,00,000/- received from three different parties which in the view of the Learned Assessing Officer (In short 'Ld. A.O') could not pass the test of identity, genuineness and creditworthiness, Ld. A.O also examined the claim of depreciation @80% under Block IX on purchase of CNC Drill machine. It was submitted by the assessee that the higher rate of depreciation @80% has been claimed under the rates of Energy Saving Device. It was claimed that the machines were used to manufacture agricultural and municipal waste conversion devices. However it was accepted that the pelleting dies manufactured by assessee did not produce any energy. The submission of the assessee could not convince the Ld. A.O and he the....
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....rectives are transformed (by "post processor" software) into the specific commands necessary for a particular machine to produce the component, and then loaded into the CNC machine. Since any particular component might require the use of a number of different tools - drills, saws, etc . - modem machines often combine multiple tools into a single "cell". In other installations, a number of different machines are used with an external controller and human or robotic operators that move the component from machine to machine. In either case, the series of steps needed to produce any part is highly automated and produces a part that closely matches the original CAD design" 5.3 From the above discussion it is thus evident that the CNC Machine is a specialised machining tool. In the context o[ the appellant it is 'used for manufacturing dies for pellet machines. These dies are then used [or making biomass pellets as explained by the appellant. However the logic given by the appellant that it is a renewable energy device is stretching the term renewable energy device to such an extent as to make it possible to include anything and everything under the said term, Admit....
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....(p) also refers to devices which produce energy from conversion of agricultural and municipal waste and the CNC machine does not qualify to be labelled as such a device. It also does not produce such device and hence does not fall in the item (r) also. In view of the above discussion it is held that the claim of the appellant has been rightly disallowed by the AO and the action of the AO is upheld in appeal. This ground of the appellant is therefore dismissed." 4. Now the assessee is in appeal before the Tribunal. 5. Ld. Counsel for the assessee made following written submissions in support of its claim for 80% depreciation on the purchase of 4-Spindle CNC Drill machine which are mainly used to manufacture pellet mill die drills pelleting dies. That the device has been defined at various places, some of which are as under:- (a)Google:https://www.google.co.inl#q=device+definition (Copy enclosed) (b) Dictionary .cambridge. org: http://dictionary/English/device (Copy enclosed) (c) Dictionary.com:http://www.dictionary.com/browse/device?s=t(Copy enclosed) (d) Oxford dictionaries.com: http://www.oxford dictionaries.com/definiti....
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....r. Prashan ath (CEO) 09844046383 [email protected] www. activebfp. Com 4 FEED MILLING TECH B/5, Mangal murti Aptt. Opp. Novino Battery, Makarpur a, Vadodara 3900010 (Gujarat) Mr. Raj Mr.Jay Patel 09824076771 09725503599 09427464434 Feedmillingtech gmail.com www. Feedmillin gtech.com 5 RAJARAM SOLVEX LTD A-21, MDC Industrial Area, Talwalwa Dist. Sangli, Islampur, Maharash tra 415409 (India) Tel.No.(s) 02342 220195 Fax No.(s) 02342 Mr. Sanjeev Pitke 9326368356 admin@rajaram solvex.com www. Rajaram solvex.co m 220194 6 RAJDEEP BIOMASS PELLETS Plot No.30 Ward 11/ BF, Opp. Naheru Park, Shivnagar , Gandhidh am- 370201 Gujarat Mr.Hardi k 9904404334 Rajdeeppellets @ gamil.com To conclude, the assessee stated that the confusion of the AO is that the assessee is claiming depreciation under clause (xiii) p whereas the assessee is claiming the same in clause (xiii) (r) which has been accepted by the AO in his own order that this machine is used for producing pelleting dies. Produces Biofuel, Agricultural waste processing plants along with all ma....
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....e of energy saving device but it has been claimed for the purchase of machineries and plants i.e. CNC drilling machine which are used for manufacturing of Pellet Mill die drills pelletting dies which are further used in manufacturing agricultural and municipal waste conversion device. 10. After thoroughly examining the assessment order, finding of Ld.CIT(A), and the detailed submission of the Ld. Counsel for the assessee made before the lower authorities as well as before us. We are of the view that the issue needs re-examination as to whether the impugned assets purchased by the assessee i.e. CNC Drilling machine is eligible for depreciation under which of the category of assets; (a) Being a machine in the nature of agricultural and municipal waste conversion device. (b) Being a machine used to manufacture machines in the form of agricultural and municipal waste conversion device. (c) The machine eligible for 15% depreciation along with 20% additional depreciation. 11. Ld. Counsel for the assessee has placed various documents and materials on record in support of its claim for 80% depreciation on the cost of CNC Drilling machine by submitting that ....