Oil wells are plant and machinery and eligible for higher depreciation

Joshi Technologies International Inc. Vs Asst. Director of Income Tax  (ITAT Ahmedabad) The ITAT, Ahmedabad in the case of M/s. Joshi Technologies International Inc. v. The Asst. Director of Income Tax [ITA Nos. 3456/Ahd/2010 & 3195/Ahd/2011, dated May 19, 2023] held that oil wells are plant and machinery, and accordingly, higher depreciation would be allowed to the assessee. Facts: M/s. Joshi Technologies International Inc. (“the Appellant”) is engaged in the exploration of crude oil, for which the Appellant installed oil wells. For the Assessment Year 2007-08 the Assessing Officer (...