ACIT, Circle-16(2), Hyd, Hyderabad V. Manjeera Hotels & Resorts Ltd., Hyd, Hyderabad

ITA 1082/HYD/2015

• Counselvise Citation: 108222514 RSA 2015
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 20-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.1082/HYD/2015 ASSESSMENT YEAR 2009-10 ACIT, CIRCLE 16(2) HYDERABAD. VS. M/S. MANJEERA HOTELS & RESORTS LTD., HYDERABAD. PAN AACCM3554C (APPELLANT) (RESPONDENT) FOR REVENUE : MR. B. KURMI NAIDU FOR ASSESSEE : - NONE - DATE OF HEARING : 04.11.2015 DATE OF PRONOUNCEMENT : 06 .11.2015 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A)-IV, HYDERABAD DATED 25.05.2 015 FOR THE A.Y. 2009-2010. THE REVENUE IS AGGRIEVED BY THE ORDER OF THE LD. CIT(A) IN ALLOWING HIGHER RATE OF DEPRECIATION ON THE WIND MILL AS CLAIMED BY THE ASS ESSEE. 2. BRIEF FACTS OF THE CASE ARE THAT, THE ASSESSEE COMPANY, WHICH IS ENGAGED IN THE BUSINESS OF HOTELS FILED ITS RETURN OF INCOME FOR THE A.Y. 2009-10 ON 29.09. 2009 DECLARING TOTAL INCOME OF RS.8,50,058 UNDER REGULAR PROVISIONS OF I.T. ACT AND RS.1,59,66,206 UNDER MAT PROVISIONS. DURING THE ASSESSMENT PROCEEDINGS UNDER 2 ITA.NO.1082/HYD/2015 M/S. MANJEERA HOTELS & RESORTS LTD., HYDERABAD. SECTION 143(3) OF THE ACT, THE A.O. OBSERVED THAT F OR THE A.Y. 2008-09 I.E., EARLIER ASSESSMENT YEAR, THE ASS ESSEE HAD CLAIMED EXCESS RATE OF DEPRECIATION ON ACCOUNT OF WIND MILL AND THE SAME WAS DISALLOWED BY THE A.O. THEREFORE, FOR THE A.Y. 2009-10, HE COMPUTED THE WD V BY MAKING THE DISALLOWANCE OF THE EXCESS OF THE DEPREC IATION DISALLOWED IN THE EARLIER ASSESSMENT YEAR AND ON TH E RESULTANT WDV, HE COMPUTED THE DEPRECIATION FOR THE RELEVANT ASSESSMENT YEAR AND THE DIFFERENCE WAS BRO UGHT TO TAX. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEF ORE THE LD. CIT(A) WHO ALLOWED THE SAME BY OBSERVING THAT, HE HAD, IN ASSESSEES OWN CASE FOR THE A.Y. 2008-09 IN ITA.NO 295/2010-11/CIT(A)-4/HYD DT.23.01.2015, ALLOWED TH E ISSUE IN FAVOUR OF THE ASSESSEE. AGGRIEVED BY THE O RDER OF THE LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 3. THE NOTICE OF HEARING IN THE ABOVE CASE HAS BEEN SENT TO THE ASSESSEE BY RPAD AND THE ACKNOWLEDGMENT IN PROOF OF THE SERVICE OF NOTICE IS ALSO ON RECORD. HOWEVER, NONE APPEARED FOR THE ASSESSEE AT THE TIME OF HEARING. SINCE THIS IS A REVENUES APPEAL, THE SAME WAS TREATED AS HEARD AFTER TAKING INTO CONSIDE RATION THE ARGUMENTS OF THE LD. D.R. THE LD. D.R. ALSO FAI RLY ADMITTED THAT THE ISSUE OF RATE OF DEPRECIATION ALL OWABLE FOR A WIND MILL WAS DECIDED BY THIS TRIBUNAL IN ASS ESSEES OWN CASE FOR THE A.Y. 2008-09 IN ITA.NO.469/H/2015 DATED 10.07.2015 IN FAVOUR OF THE ASSESSEE AND THAT THIS TRIBUNAL AT PARA-8 THEREOF HAS HELD AS UNDER : 3 ITA.NO.1082/HYD/2015 M/S. MANJEERA HOTELS & RESORTS LTD., HYDERABAD. 8. IN VIEW OF THE ABOVE, THE ABOVE UNITS WHICH ARE TREATED BY THE A.O. AS SEPARATE INDEPENDENT PLANT & MACHINERY ARE INTEGRAL PART OF WINDMILL SYSTEM AND HAS NO INDEPENDENT EXISTENCE AS PLANT AND MACHINERY. THE CIVIL WORKS SUCH AS FOUNDATIONS CANNOT BE TREATED AS BUILDINGS SO AS TO CONSIDER THEM AS INDEPENDENT ASSETS. WE HOLD THAT THEY ARE PART OF WIND MILL AND IS ENTITLED FOR DEPRECIATION @80%. THE ORDER OF CIT(A) IS THEREFORE UPHELD. THERE IS NO MERIT IN REVENUES GROUNDS AND ACCORDINGLY, THEY ARE DISMISSED. 4. WE FIND THAT THE ASSESSMENT YEAR BEFORE US I.E., A.Y. 2009-10 IS THE SUBSEQUENT YEAR IN WHICH THE CLOSING WDV OF THE EARLIER YEAR HAS TO BE AS THE OP ENING WDV FOR THIS FINANCIAL YEAR AND AS RIGHTLY HELD BY THE LD. CIT(A), THE CONSEQUENTIAL EFFECT, WOULD HAVE TO BE GIVEN TO THE ASSESSEE IN THIS ASSESSMENT YEAR. THEREFORE, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A ). REVENUES GROUNDS OF APPEAL ARE ACCORDINGLY DISMISS ED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 06.11.2015. SD/- SD/- (S. RIFAUR RAHMAN) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 06 TH NOVEMBER, 2015 VBP/- 4 ITA.NO.1082/HYD/2015 M/S. MANJEERA HOTELS & RESORTS LTD., HYDERABAD. COPY TO : 1. THE ACIT, CIRCLE 16(2), ROOM NO.611, 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. M/S. MANJEERA HOTELS & RESORTS LTD., 304, ADITYA TRADE CENTRE, AMEERPET, HYDERABAD. 3. CIT(A) - IV , HYDERABAD 4 . CIT - IV , HYDERABAD 5 . D.R. ITAT B BENCH, HYDERABAD. 6 . GUARD FILE