Law:

Section:

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of -Assessment year 1994-95 - Whether fluid bed drier, which does not find place in restrictive definition of 'energy saving devices' in Depreciation Table appended to Income-tax Rules, 1962, is entitled to 100 per cent depreciation - Held, no Words & Phrases : 'being' as occurring in Item III(3)( iii) of old Appendix I of the Income-tax Rules, 1962 FACTS For the relevant assessment year, the assessee-company had claimed 100 per cent depreciation on fluid bed drier. The Assessing Officer disallowed its claim on the ground that a fluid bed drier was not enumerated as an energy saving device in the old Appendix I of the Income-tax Rules, 1962 which was applicable for the assessment years 1988-89 to 2002-03. On appeal, the Commissioner (Appeals) set aside the order of the Assessing Officer and allowed the assessee's claim. On the revenue's appeal, the Tribunal upheld the order of the Commissioner (Appeals). On the revenue's appeal to the High Court : HELD The word 'being' as used in the Depreciation Table means, energy saving devices 'which are' the devices mentioned therein. Further, in the same Table, the subject category in (8)(ix) has the caption 'Specialised boilers and furnaces' and the word 'drier' is not used. In the same Table, the words "ventilator used with anesthesia apparatus" and the words "ventilators other than those used with anesthesia" are used with reference to 'life saving... being...'. If 'being' is to be treated as like or including, then it was not necessary to specifically mention "ventilators used with anesthesia apparatus" and "ventilators other than those used with anesthesia". So, it does appear that the Depreciation Table enumerates and exhausts those equipments for which depreciation is admissible at the rates mentioned. Under the head 'Renewal energy devices', the 'solar crop driers' as well as 'solar water heaters' are included. So, if 'driers' were meant to be included, they would have been specifically indicated therein. [Para 13] In the compilation given by the assessee, the words 'furnaces' and 'boilers' have been explained. 'Furnace' is an enclosed…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492