2021 (2) TMI 268

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....llowance of Depreciation claimed on the machineries purchased at the end of the year amounting to Rs. 36,35,372/-. a) Because the assessee has submitted bills of machinery purchased on 26.02.2013 which were installed on 30.03.2012 by engineers of Voltas Ltd. a unit of Tata and the proof of visit for installation and commissioning of engineers were submitted, thus the machine was not only installed & commissioned but also subjected to trial run by Engineers of TATA, that was ignored by the ld. CIT(A). b) Because the certificate of Excise Commissioner dt. 13.05.2013 stated that Plant & Machinery were found to be installed on the said date and not the date of installation of such Plant & Machinery, as relied by ld. CIT(A)." 2. The brief f....

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....h, but they were duly installed and put to use on 30th March, 2012, which is evident from purchase invoice placed in the paper book and certificate of installation by M/s. Voltas Ltd. on 30th March, 2012. The copy of which has been placed in the paper book at pages 44 and 45, who were authorized agent for installation and commissioning of their machines. The invoice for installation and commissioning was as under: Invoice No. Date Amount Description 8002047552 30.03.2013 Rs. 9303 Installation and Commissioning of LR9AXL i.e. bill No.11211203303 & 1211203307 of LMW 8002048005 30.03.2013 Rs. 9303 Installation and commissioning of LH-15 i.e. Bill No. 1111201285 of LMW 5. The machines were fully installed and commissioned a....

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....e had purchased machines from M/s. Lakshmi Machine Works Limited on 26.02.2013 and 07.03.2013. As per the invoice and certificate issued by M/s. Voltas Limited, it has been certified that the machines were installed and commissioned on 30.03.2013. Thus, from these evidences, it is quite evident the machines were not only installed but ready to use as on 30.03.2013. Once this is an accepted position, then in view of the judgment of the Hon'ble Jurisdictional High cited supra, if the assets in the form of machinery equipment are kept ready for use, then same is eligible for depreciation as per the Income Tax Rules. In NTPC vs. CIT (supra), the Hon'ble High Court held that two conditions are necessary to be fulfilled before an allowanc....