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Normal depreciation rate for electrical fittings under IT Act
Normal depreciation rate for electrical fittings under IT Act
1. Nexo Industries Pvt. Ltd. claimed depreciation for electric fittings @15% assuming it to be a machinery as defined u/s 32 of IT Act. 2. AO rejected the depreciation claimed @ 15% and instead allowed a depreciation @ 10%. 3. Assessee claimed that u/s 32 the word "electrical fittings" has been further defined under two sub heads: i.e. (a) Electric fittings for office and (b) electric fittings otherwise 4. Assessee claimed depreciation for electric fittings for office @15% 5. CIT(A) allowed the depreciation claimed by assessee @15% and rejected the AO's order. 6. Futher, as per IT Act the department can file an appeal to ITAT only if the tax amount involved in a case is more than Rs. 10 lakhs. 7. Since the tax effect involved in this appeal was below Rs 10 lakhs, so the appeal was not maintainable with ITAT by Revenue.
1. Nexo Industries Pvt. Ltd. claimed depreciation for electric fittings @15% assuming it to be a machinery as defined u/s 32 of IT Act.
2. AO rejected the depreciation claimed @ 15% and instead allowed a depreciation @ 10%.
3. Assessee claimed that u/s 32 the word "electrical fittings" has been further defined under two sub heads:
i.e. (a) Electric fittings for office and (b) electric fittings otherwise
4. Assessee claimed depreciation for electric fittings for office @15%
5. CIT(A) allowed the depreciation claimed by assessee @15% and rejected the AO's order.
6. Futher, as per IT Act the department can file an appeal to ITAT only if the tax amount involved in a case is more than Rs. 10 lakhs.
7. Since the tax effect involved in this appeal was below Rs 10 lakhs, so the appeal was not maintainable with ITAT by Revenue.
