2012 (9) TMI 1199

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.... the ld. CIT(A) erred in deleting the addition of Rs. 26,86,162/- (Rs. 22,54,318 in ITA No.1459/Ahd/2012) by allowing depreciation on moulds @ 40% as against 25% allowable on the dies and moulds used for manufacturing electric and electronic goods by treating the manufacturing facility or the assessee as rubber and plastic goods factory in terms of Appendix-1 to rule 5 of the Income Tax Rules, 1962, ignoring the fact that, in common commercial practice, factories producing electric and electronic goods are not known as a rubber and plastic goods factories. 3. We are deciding both the appeals by taking the facts of ITA No.1458/Ahd/2012. 4. The Assessing Officer has dealt the issue as under:- "It is noticed from the computation....

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....s Additions from 1-10-2002 Allowable w.d.v. on 1-4-2002 upto 30-9-2002 to 31-3-2003 depreciation as on Rs. 13885946/- Rs. 3980352/- Rs. 82900/- 4476937 13472261 The assessee has claimed Rs. 7163099/- as depreciation on moulds for the assessment year under consideration. But allowable depreciation as discussed above comes to Rs. 4476937/-. Hence an addition of Rs. 2686162/- (Rs. 7163099-Rs. 4476937) is made to the total income of the assessee on this account." 5. Ld. CIT(A) deleted this addition by following the earlier decision of the Tribunal in assessee's own case vide ITA No.488/Ahd/2007 dated 04.10.2007 for the assessment year 2001-02 wherein following was held:- "CIT(A) after considering various judgemen....