Depreciation on electric fittings which are integral part of plant and machinery can be claimed at @25%:

Assessee claimed depreciation on electric fittings @ 25% which was restricted by AO to 15% being the rate of depreciation on electrical fittings. CIT(A) allowed the claim of depreciation @ 25%. On revenue’s appeal, Hon’ble ITAT observed that the assessee is engaged in the business of running a multiplex theatre. The electric fittings included equipment connected to projector and other film exhibition systems. It was observed that Hon’ble Rajasthan High Court, in the case of “CIT vs. RG Ispat Ltd. – 272 ITR 383”, has held that where a particular structure is merely helpful in carrying on the activities of assessee, it may not be a plant but if it is an integral part of plant and machinery or portion of that building is an integral part of plant and machinery, then that should be considered as plant in view of the Hon’ble Apex Court’s decision in the case of “CIT vs. Karnataka Power Corporation – 247 ITR 268 (SC)”. In the assessee’s case, electric fittings were essential part of the film exhibition and not ancillary to its business. Without such electric items, the projector as well as exhibition systems cannot be run. Hence, it was held that such electric fittings were part and parcel of the plant & machinery and assessee was entitled to depreciation @ 25%. Accordingly, Revenue’s appeal was dismissed.

[DCIT vs. Anoli Holdings Pvt. Ltd. – ITA No.3175/Ahd/2010]