- (1.) This appeal was heard extensively on November 11, 2014, as well as today. The appeal preferred by the Revenue under section 260A of the Income-tax Act, 1961, against the consolidated order dated January 8, 2014, passed by the Income-tax Appellate Tribunal "A" Bench in I.T.A. No. 517/Kolkata/2012 filed by the Revenue and CO No. 46/Kolkata/2012 filed by the asses-see both for the assessment year 2008-09 seeks to raise the questions set out in paragraph 8 of the stay application for adjudication. We admit question No. 1 for adjudication as we find the other questions raised are not substantial questions of law to be adjudicated in the appeal.
(2.) By consent of the parties the question formulated is taken up for hearing in appeal. The question is as under: "(i) Whether, on the facts and in the circumstances of the case, the learned Tribunal erred in law and was not justified in allowing the appeal filed by the assessee as well as on law in upholding the decision of the Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 4,17,27,868 made by the Assessing Officer on the ground of additional depreciation without appreciating the fact that the case of the assessee falls under clause (i) of sub-section (1) of section 32 for which there is no additional depreciation available in clause (iia) of sub-section (1) of section 32 of the Income-tax Act, 1961?"
(3.) It appears the assessee had claimed further depreciation in respect of its plant and machinery used for the purpose of generation of power necessary for its business of manufacture and production of sponge iron, ingot/billets, etc., upon having claimed depreciation in respect of its assets under section 32(1) clause (i), i.e., under the rates directed by rule 5(1A) of the Income-tax Rules, 1962, as have been provided for in Appendix I thereof. The assessee's claim for deduction of further depreciation is in terms of clause (iia) of section 32(1). The said clause, as it stood in the relevant assessment year, is set out as under: "(iia) in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent, of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii).";