Assessee was company engaged in business of manufacturing and dealing with water  treatment chemicals, industrial additives, oilfield chemicals and trading of equipments . It claimed depreciation on new plant and machinery . The  Assessing Officer held that there was no justification for installing those plant and machineries at customers site at free of cost hence disallowed the depreciation . CIT (A) deleted the disallowance and held that  the  assessee brought to notice by filing sample copies of some of agreements whereby assessee had agreed that monitoring equipments and pumps would be installed at clients premises and Installation of equipments in client’s premises of assessee’s equipments was necessary and part and parcel of nature of business carried on by assessee  .On appeal Tribunal affirmed the order of the CIT ( A )  . Tribunal held that  disallowance of 5% of reimbursement of expenses is held to be justified .(AY. 2008 09)