The assessee is in the business of prawn cultivation. The assessee claimed depreciation on ponds and reservoirs at 100% treating the same as pollution control equipments. Tribunal affirmed the order of Assessing Officer who allowed the depreciation at 25%. High Court affirmed the order of Tribunal. The assessee also claimed depreciation at 25% on approach road, drainage, borewells, reservoirs etc. The Assessing Officer allowed the depreciation at 10%. The Tribunal affirmed the order of the Assessing Officer. On appeal High Court affirmed the order of Tribunal. (AY. 1994-95, 1995-96)
Industrial Incubators (P) Ltd. v. Dy. CIT (2021) 323 CTR 1001 / (2022) 209 DTR 277/ 284 Taxman 465 (Orissa)(HC)
S. 32 : Depreciation-Plant and machinery-Ponds and reservoirs-Pollution control equipment’s- Aerators Depreciation allowable at 25% as against 100% claimed by the assessee-Approach road, drainage, borewells, reservoirs etc-Depreciation allowable at 10 % as against 25% claimed by the assessee. [ S. 43(3 ) ]