Bharat Embroideries Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 1290/DEL/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7183 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 07-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 08-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS RISHPAL BEDI
• Assessee Lawyers: SUNIL VERMA
• Keywords: Depreciation
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I: NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.1290/DEL/2016 ASSESSMENT YEAR : 2008-09 BHARAT EMBROIDERIES PVT. LTD., A-3, ANAND NIKETAN, NEW DELHI. PAN: AAACB5162F VS. ITO, COY. WARD 2(4), CR BUILDING, IP ESTATE, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SUNIL VERMA, CA DEPARTMENT BY : MRS RISHPAL BEDI, JCIT DATE OF HEARING : 07.06.2016 DATE OF PRONOUNCEMENT : 07.06.2016 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 30.12.2015 IN RELATION TO T HE ASSESSMENT YEAR 2008-09. ITA NO.1290/DEL/2016 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE RATE OF DEPRECIATION ALLOWABLE ON UPS. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE CLAIMED DEPRECIATION ON STABILIZERS/TRANSFORMERS AND UPS @ 80%. ASSESSMENT WAS COMPLETED U/S 143(3) ALLOWING DEPRECIATION ACCO RDINGLY. THEREAFTER, NOTICE U/S 154 WAS ISSUED PURSUANT TO WHICH THE ORD ER LEADING TO THE FILING OF THE INSTANT APPEAL, WAS PASSED. IN THIS ORDER, THE AO ALLOWED DEPRECIATION @ 80% ON STABILIZERS AND 60% ON UPS BY FOLLOWING THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF CIT VS. BSES YAMUNA POWER LTD. THE ASSESSEE CONTENDED BEFO RE THE LD. CIT(A) THAT DEPRECIATION ON UPS OUGHT TO HAVE BEEN ALLOWED AT 80%. THE LD. CIT(A) ISSUED ENHANCEMENT NOTICE AND, EVENT UALLY, DISMISSED THE ASSESSEES APPEAL BY FURTHER DIRECTING THE AO T O RESTRICT DEPRECIATION ON UPS AT 15% AS AGAINST 80% CLAIMED BY THE ASSESSE E AND 60% ALLOWED BY THE AO. THE ASSESSEE IS AGGRIEVED AGAIN ST THE IMPUGNED ORDER. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT ITA NO.1290/DEL/2016 3 MATERIAL ON RECORD. THERE IS NO CONTROVERSY ON THE ALLOWING OF DEPRECIATION @ 80% ON STABILIZERS. THE ONLY QUARRE L IS ON THE RATE AT WHICH DEPRECIATION OUGHT TO HAVE BEEN ALLOWED ON UP S. WHEREAS THE ASSESSEE CLAIMED DEPRECIATION @ 80% ON UPS, THE AO RESTRICTED SUCH DEPRECIATION U/S 154 TO 60% BY RELYING ON THE JUDGM ENT IN THE CIT VS. BSES YAMUNA POWERS LTD. 2010TIOL-636-HC-DEL-IT , AND THE LD. CIT(A) RESTRICTED IT TO 15%. IN MY CONSIDERED OPIN ION, WHEN THERE IS A DIRECT JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN CIT VS. BSES YAMUNA POWER LTD.(SUPRA) ALLOWING DEPRECIATION @ 60% ON UPS, THERE CAN BE NO OTHER SECOND VIEW EITHER REST RICTING THIS RATE OF DEPRECIATION TO 15% OR ENHANCING IT TO 80%. OVERTU RNING THE IMPUGNED ORDER, I DIRECT TO ALLOW DEPRECIATION ON UPS @ 60%. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 07.06.201 6. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED,07 TH JUNE, 2015. ITA NO.1290/DEL/2016 4 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.