Mavin Texturisers Pvt.Ltd., Surat V. The Dy.CIT, Circle-1, Surat

ITA 1044/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8755 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 15-03-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 09-03-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C PANDIT
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL , AM) ITA NO.1044/AHD/2007 A. Y.: 2004-05 M/S. MAVIN TEXTURISERS PVT. LTD., 2 ND FLOOR, CORPORATE BUILDING , BOMBAY MARKET, SURAT PA NO. AACCN 4411G VS THE D. C. I. T., CIRCLE-1, AAYAKAR BHAVAN, MAJURA GATE, SURAT (APPELLANT) (RESPONDENT) APPELLANT BY SHRI HARDIK VORA, AR RESPONDENT BY SHRI M. C. PANDIT, DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-I, SURAT DATED 31-0 1-2007 FOR ASSESSMENT YEAR 2004-05 ON THE FOLLOWING GROUND: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS W ELL AS ON LAW ON THE SUBJECT, THE LEARNED CIT(APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF ASSESSING OFFICER IN ALLOW ING DEPRECIATION AT RATE OF 25% INSTEAD OF 50% AS CLAIM ED BY ASSESSEE ON MACHINERY PURCHASED UNDER TUF SCHEME. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF YARN TWISTING AND TEXTURISING AND ALSO CLOTH MANUFACTURING. DURING TH E YEAR THE ASSESSEE HAS CLAIMED DEPRECIATION @ 50% ON MACHINERIES PURCH ASED U/S TUF SCHEME. ALL THESE MACHINERIES WERE USED FOR THE PUR POSE OF TWISTING OF YEARN AND ON THE SAME THE ASSESSEE HAS CLAIMED DEPR ECIATION @ 50% IN VIEW OF ENTRY AT SR. NO. 6 OF PART A (III) OF APPE NDIX - I OF IT RULES. THE AO WANTED TO ALLOW NORMAL DEPRECIATION ONLY AFTER P LANT AND MACHINERIES IS PURCHASED UNDER TUF SCHEME AND AS FOR PURPOSE OF WEAVING, PROCESSING AND GARMENT SECTOR OF TEXTILE INDUSTRIES . THE AO STATED THAT HIGHER RATE OF DEPRECIATION IS NOT AVAILABLE FOR MA CHINERIES USED FOR ITA NO.1044/AHD/2007 MAVIN TEXTURISING PVT. LTD. 2 TWISTING, TEXTURISING AND MANUFACTURING OF YARN. TH E ASSESSEE ARGUED THAT AS PER TEXTILE MINISTRY, ITS MACHINERIES WERE COVERED BY TUF SCHEME AND THE ASSESSEE HAD OBTAINED LOAN UNDER TUF SCHEME AND, THEREFORE, HIGHER RATE OF DEPRECIATION IS ALLOWABLE. THE AO HA S HOWEVER, ALLOWED NORMAL DEPRECIATION OF 25%. THE LEARNED CIT(A) CONF IRMED THE ORDER OF THE AO. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ISSUE IS COVERED BY THE ORDER OF ITAT B BENCH, AHMEDABAD IN THE CASE OF NANGALIA SYNTHETICS PVT. LTD. IN ITA NO.2213/AHD/20 08 DATED 10-11- 2009. COPY OF THE ORDER IS FILED. THE LEARNED DR D ID NOT DISPUTE THE SAME. 4. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE O RDER OF ITAT AHMEDABAD B BENCH IN THE CASE OF NANGALIA SYNTHET ICS PVT. LTD. IN ITA NO.2213/AHD/2008 DATED 10-11-2009 IN WHICH THE TRIB UNAL FOLLOWED ITS EARLIER ORDER AND ALLOWED THE CLAIM OF THE ASSESSEE . THE FINDINGS OF THE TRIBUNAL IN THE ABOVE CASE IN PARA ARE REPRODUCED A S UNDER: 7. AFTER HEARING THE LEARNED REPRESENTATIVES OF BO TH THE PARTIES, WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE DECISIO N OF ITAT AHMEDABAD D BENCH IN THE CASE OF BIPINCHANDRA MOH ANLAL GAJJAR VS. ITO, W-6(1), SURAT IN ITA NO. 3128/AHD/2 008 DATED 18-02-2009 RELATING TO AY 2005-06. THE ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL IS SIMILAR TO THAT OF T HE CASE OF BIPINCHANDRA MOHANLAL GAJJAR (SUPRA). RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF BIPINCHAND RA MOHANLAL GAJJAR (SUPRA), WE HOLD THAT SINCE ADMITTEDLY, THE TWISTING MACHINE WAS USED BY WEAVING SECTOR OF TEXTILE INDUS TRY, DEPRECIATION ON THE SAID MACHINERY @50% SHOULD BE A LLOWED. WE ACCORDINGLY, ALLOW THE GROUND OF APPEAL. ITA NO.1044/AHD/2007 MAVIN TEXTURISING PVT. LTD. 3 5. IN VIEW OF THE ABOVE ORDER, WE SET AIDE THE ORDE RS OF THE AUTHORITIES BELOW AND ALLOW THE CLAIM OF THE ASSESSEE FOR HIGHE R DEPRECIATION. AS A RESULT, THIS GROUND OF APPEAL OF THE ASSESSEE IS AL LOWED. 6. AS A RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED ON 22-03-2010. SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 22-03-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD