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| The Tax Publishers2020 TaxPub(DT) 1753 (Del-HC) INCOME TAX ACT, 1961
Section 32(1)
Where meters installed by assessee were having special features like 'Time of Day' and depreciation schedule specifically/separately covers feature of 'Time of Day' under Item III(8)(ix)-E(i) the assessee has been successfully able to demonstrate that it was very much entitled to claim depreciation on energy meters @ 80% and without appreciating the above schedule, the authorities below were not justified in disallowing the claimed depreciation on these assets on the ground that the energy meters did not facilitate in conservation of energy.
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Depreciation - Rate of depreciation - Electronic/energy meters - AO did not verify assessee's claim of depreciation at higher rate of 80%
Assessee claimed depreciation at the rate of 80% on electronic meters/energy meters. AO took the view that more than 60% of the meters were mechanically advanced meters which did not have any special feature entitling them to depreciation at the rate of 80%. Assessee submitted that specifications contained in energy meters installed by assessee company also included specific features of 'time of day'.Held: To meet out submissions that most of the meters were energy saving meters, assessee referred page No. 75 of supplementary paper book, i.e., copy of relevant extracts of tax audit report of assessee for assessment year under consideration reflecting statement of particulars including bifurcation of expenses between normal meter and electronic meters. Accordingly, matter was referred back to the file of the AO to verify and allow claim of depreciation at the rate of 80% on electronic meters/energy meters only after affording opportunity of being heard to assessee.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2007-08 & 2008-09
INCOME TAX ACT, 1961
Section 32(1)
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