The ACIT- Circle-I(2), Baroda V. M/s. L.K. India Pvt. Ltd., Baroda

ITA 1068/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9440 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-01-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 11-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJENDRA RAJPUT
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NOS.1068AHD/2014 (ASSESSMENT YEAR:2008-09) THE ACIT, CIR.1(2), BARODA APPELLANT VS. M/S. L. K. INDIA PVT. LTD. 328/23, RASULABAD ROAD, VILL. JARODA, TAL. WAGHODIA, BARODA, PIN-391510 R ESPONDENT PAN: AAACL3236C /BY REVENUE : SHRI JAMES KURIAN, SR. D.R. /BY ASSESSEE : SHRI RAJENDRA RAJPUT, A.R. /DATE OF HEARING : 09.01.2017 /DATE OF PRONOUNCEMENT : 17.01.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2008-09 A RISES AGAINST CIT(A)-I, BARODAS ORDER DATED 01.01.2014, PASSED I N APPEAL NO. CAB- I/298/2011-12; IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 144C(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE REVENUES SOLE SUBSTANTIVE GROUND PLEADS THA T THE CIT(A) HAS ERRED IN REVERSING ASSESSING OFFICERS ACTION MAKIN G ADDITION OF RS.53,02,144/- BY DISALLOWING DEPRECIATION ON MOULD S @ 40% AS AGAINST ITA NO. 1068/AHD/2014 (ACIT VS. M/S. L. K. INDIA PV T. LTD.) A.Y. 2008-09 - 2 - 25% ALLOWABLE ON DYES AND MOULDS USED FOR MANUFACTU RING ELECTRIC AND ELECTRONIC GOODS THEREBY TREATING ASSESSEES MANUFA CTURING FACILITY AS RUBBER AND PLASTIC GOODS FACTORY AS PER APPENDIX-1 READ WI TH RULE 5 OF THE INCOME TAX RULES, 1962, AFTER ALLEGEDLY IGNORING THE FACT THAT SUCH FACTORIES PRODUCING ELECTRIC AND ELECTRONIC GOODS ARE NOT KNO WN AS RUBBER AND PLASTIC GOOD FACTORY IN COMMON PARLANCE. 3. WE HAVE HEARD BOTH THE PARTIES AT LENGTH. IT AP PEARS THAT THE CIT(A) HAS FOLLOWED THIS TRIBUNALS DECISIONS IN ASSESSEE S CASES ITSELF SINCE ASSESSMENT YEAR 2008-09 ON THE VERY ISSUE IN DECIDI NG THE ABOVE GROUND AGAINST THE REVENUE. LEARNED COUNSEL REPRESENTING ASSESSEE TAKES US TO PAGE 29 OF THE PAPER BOOK CONTAINING HONBLE JURISDICTIO NAL HIGH COURTS DECISION IN ITS CASE TAX APPEAL NO.747/2015 DECIDED ON 21.06 .2016 UPHOLDING TRIBUNALS ORDER HOLDING THE FACTORY IN QUESTION TO BE IN THE NATURE OF A PLASTIC GOODS FACTORY MAKING THE MOULDS IN QUESTION AS ELIG IBLE FOR HIGHER RATE OF DEPRECIATION IN THE NEW APPENDIX-1, PART (A), ENTRY (III), CLAUSE (3), SUB- CLAUSE (VII). THE REVENUE FAILS TO REBUT THIS LEGA L POSITION. WE THUS FIND NO REASON TO INTERFERE IN THE LOWER APPELLATE FINDINGS UNDER CHALLENGE. REVENUES SOLE SUBSTANTIVE GROUND IS ACCORDINGLY DE CLINED. 5. THIS REVENUES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 17 TH DAY OF JANUARY, 2017.] SD/- SD/- ( PRAMOD KUMAR ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 17/01/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ITA NO. 1068/AHD/2014 (ACIT VS. M/S. L. K. INDIA PV T. LTD.) A.Y. 2008-09 - 3 - ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0