CINETECH ENTERTAINMENT INDIA PVT LTD, , MUMBAI V. ITO, WAR-16(1)(1), MUMBAI

ITA 1110/MUM/2023

AI Insights

The case involves M/s. Cinetech Entertainment India Pvt. Ltd., the appellant, contesting the order of the CIT(A)/NFAC, Delhi, which confirmed the AO's decision to disallow depreciation claimed on a Film Projector for the Assessment Year 2015-16. The appellant argued that the depreciation should be recalculated at 15% based on the revised WDV, following the Tribunal's earlier rulings for the Assessment Years 2013-14 and 2014-15. The Tribunal found that the delay in filing the appeal was justified as the appellant was unaware of the ex-parte order until a casual check of the e-filing portal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300078 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 26-06-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 04-04-2023
• Other Referred Cases: AY. 2013-14, AY. 2014-15
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM आयकर अपील सं/ I.T.A. No.1110/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2015-16) M/s. Cinetech Entertainment India Pvt. Ltd. 27 Filmlab, Walbhatt Road Goregaon (E), Mumbai- 400063. बिधम/ Vs. ITO, Ward-16(1)(1) Room No. 436A, Aayakar Bhavan, Maharishi Karve Road, Mumbai-400020. स्थधयी लेखध सं./जीआइआर सं./PAN/GIR No. : AAECC3526G (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) सुनवाई की तारीख / Date of Hearing: 27/06/2023 घोषणा की तारीख /Date of Pronouncement: 30/06/2023 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi dated 14.10.2021 for AY. 2015-16. 2. The main grievance of the assessee is against the action of the Ld. CIT(A) confirming the action of the AO disallowing the depreciation in respect of Film Projector. 3. At the outset, it has been brought to my notice that there is a delay of fifteen (15) months in filing of the appeal. According to Ld. AR, even though, the Ld. CIT(A) has passed the impugned order on 14.10.2021, the assessee was not aware of the passing of the impugned order because it was an ex-parte order; and a copy of which was not received by the assessee and the assessee came to know about the passing of the exparte order only while casually examining e-filing portal on 31.03.2023; and immediately after realising that impugned order was passed, the assessee filed the appeal on 05.04.2023; and in Assessee by: Shri Rakesh Joshi Revenue by: Shri Dharmvir D Yadav (Sr. DR) ITA No.1110/Mum/2023 A.Y. 2015-16 M/s. Cinetech Entertainment India Pvt. Ltd. 2 order to support the aforesaid contention has filed an affidavit. After going through the contents of the affidavit, I am of the view that delay caused was not due to the deliberate omission the part of assessee. Since there is reasonable cause for delay in filing of appeal, the delay caused in filing of appeal is condoned and proceed to dispose of the appeal on merits. 4. At the outset, regarding the issue of deprecation claimed by assessee, it has been brought to my notice that the assessee had claimed 60% depreciation in respect of Film Projector in the earlier assessment year i.e. in AY. 2013-14 which was not accepted even at the level of this Tribunal and depreciation was allowed only at 15%. And it was also brought to our notice that in AY 2014-15 also, the Tribunal following the decision in assessee’s own case for AY. 2013- 14 have directed the AO to examine the working of depreciation as per the revised WDV for AY. 2014-15. Therefore, the prayer of the assessee is only limited to allowing depreciation @ 15% as per the revised WDV after giving effect to Tribunal order for earlier two assessment years [AY 2013-14 & 2014-15]. In the light of the aforesaid decision of the Tribunal in the assessee’s own case for AY. 2013-14 & AY. 2014-15, similar direction need only be passed. For ease of understanding the effect of Tribunal order in earlier years to th on depreciation in respect of film projector, assessee has filed the following chart to show the claim of assessee and the action of AO/Tribunal (Infra) for AY. 2013-14, AY. 2014-15 and AY. 2015-16 which is extracted below: - As per IT Returns filed by the assessee ITA No.1110/Mum/2023 A.Y. 2015-16 M/s. Cinetech Entertainment India Pvt. Ltd. 3 AY Opening WDV Addition during the year Total Depreciation @ 60% Closing WDV 2013-14 2,05,44,188 2,05,44,188 1,22,50,283 82,93,905 2014-15 82,93,905 20,80,800 1,03,74,705 62,24,823 41,49,882 2015-16 41,49,882 -11,200 41,38,682 24,83,209 16,55,473 As per Assessment Order Passed u/s 143(3) of the Act AY Opening WDV Addition during the year Total Depreciation @ 60% Closing WDV 2013-14 2,05,44,188 2,05,44,188 30,62,571 1,74,81,617 2014-15 1,74,81,617 20,80,800 1,95,62,417 29,34,363 1,66,28,055 2015-16 1,66,28,055 1,66,28,055 24,94,208 1,41,33,846 Depreciation Disallowable Particulars AY.2013-14 AY. 2014-15 AY. 2015-16 Depreciation Claimed as per ITR 1,22,50,283 62,24,823 24,83,209 Depreciation Allowable as per Asst. Order 30,62,571 29,34,363 24,94,208 Depreciation Disallowable 91,87,712 32,90,461 -10,999 5. Respectfully following the Tribunal orders, in assessee’s own case for AY. 2013-14 & AY. 2014-15, AO is directed to correctly re- work the depreciation allowable to the assessee as per the revised WDV chart given (supra) i.e, after giving effect to the Tribunal order in assessee’s own case for AY. 2013-14 & AY. 2014-15 by giving 15% depreciation on Film Projector, in accordance to law and after considering the chart reproduced (supra). 6. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on this 30/06/2023. Sd/- (ABY T. VARKEY) JUDICIAL MEMBER मुंबई Mumbai; दिनांक Dated : 30/06/2023. Vijay Pal Singh, (Sr. PS) ITA No.1110/Mum/2023 A.Y. 2015-16 M/s. Cinetech Entertainment India Pvt. Ltd. 4 आदेश की प्रनिनलनि अग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, मुंबई / DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. आदेशधिुसधर/ BY ORDER, सत्यादपत प्रदत //True Copy// उि/सहधयक िंजीकधर /(Dy./Asstt. Registrar) आयकर अिीलीय अनर्करण, मुंबई / ITAT, Mumbai