Case Law Details
ACIT Vs Kerala Communicators Cable Ltd. (ITAT Cochin)
The Assessing Officer granted depreciation at the rate of 15% being machinery and plant other than those covered by sub-items (2), (3) and (8). According to the assessee, it is covered under sub-item (8)(ix)(E)(k). Sub-item (ix) of item (8) is energy saving device and (E) is electric equipment. For claiming higher rate of depreciation of 80%, assessee has to prove that the STB’s are energy saving devices being electrical equipment.
In the absence of proving so, STB’s would be entitled for depreciation under general category of `machinery and plant’ and not a sub-item mentioned under (8) i.e. energy saving device being electric equipment. The finding rendered by the CIT(A) is insufficient to come to a conclusion that the assessee is entitled to the depreciation at the rate of 80%.
The order of the assessment relied on by the assessee for assessment year 2015-2016 stating that the Assessing Officer had granted depreciation on STB’s at the rate of 80% for that year has been revised by the Commissioner u/s 263 of the I.T.Act and is no longer in existence.
Therefore, the assessee cannot place reliance on the assessment order for assessment year 2015-2016, wherein the assessee was granted depreciation at the rate of 80%. As per TRAI regulations dated 01.04.2015, the depreciation on the price of customer premises equipment (which included Set Top Box and remote control for Set Top Box) shall be calculated using straight line method at the rate not exceeding 1.7% for every completed calendar month or part thereof.
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