ACIT Vs M/s Hari Machines Ltd (ITAT Delhi)- Service tax is a recovery on behalf of the company and it has been paid to Government account. Element of service tax cannot be treated as income of the assessee.
Assessee is entitled to depreciation u/s 32 on the equipment purchased during the impugned year once a government authority inspecting the equipment, certifies the date of power supply to the equipments and after inspection has permitted energisation of the equipment.
A finding of fact has been recorded by ld. CIT(A) that so as it relates to depreciation relating to Plate Bending Machine, 50 Ton Cranes and electrical installations, the user of these assets is backed by the report of electrical inspector who is a Government Authority authorise to inspect the equipment and to grant certificate regarding energisation of those assets. It has not been shown by the revenue that these findings recorded by ld. CIT(A) are contrary to the facts existing on record. Therefore, we decline to interfere in the relief given by CIT(A) and this ground of the revenue is dismissed.