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Facts
The assessee claimed depreciation at 15% on electrical installations. The Revenue allowed only 10% depreciation, disallowing Rs. 4,98,971.
Held
The Tribunal held that electrical installations are corollary to plant and machinery, thus 15% depreciation is allowable. The Tribunal followed a co-ordinate bench's decision in the assessee's own case for AY 2011-12.
Key Issues
Whether the assessee is entitled to depreciation at 15% on electrical installations as they are corollary to plant and machinery.
Sections Cited
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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI T.R. SENTHIL KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER (Assessment Year: 2015-16) Crest Speciality Resins Private Deputy Commissioner of Vs. Limited, Income Tax, Survey No.609, Circle-1(1)(1), Village Kheda, Ahmedabad Kheda-378560 [PAN : AAACC6333 R] (Appellant) .. (Respondent) Appellant by : Ms. Amrin Pathan, AR Respondent by: Shri Ankit Jain, Sr DR Date of Hearing 23.04.2025 Date of Pronouncement 02.05.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
Delay Condoned This appeal is filed by the Assessee against the appellate order dated 09.05.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2015-16.
Straight to the issue of depreciation, the assessee claimed depreciation @ 15% on the electrical installation and the Revenue allowed the depreciation @ 10% and disallowed an amount of Rs.4,98,971/-. On going through the record, we find that the electrical installations are corollary to the plant and machinery; hence, depreciation @ 15% is allowable. It is also to be mentioned here that a similar matter stands adjudicated by the Crest Speciality Resins Pvt. Ltd. Vs.DCIT Asst. Year : 2015-16 - 2– Co-ordinate Bench of the Tribunal in assessee’s own case for AY 2011-12 on the identical issue wherein the depreciation was allowed @ 15%. In the absence of any change in the factual matrix of the case and in the legal proposition, the appeal of the assessee is hereby allowed.
In the result, the appeal of the assessee is allowed.