The DCIT, Circle-5, Ahmedabad V. M/s. Rajratna Metal Industries, Ahmedabad

ITA 1300/AHD/2010

• Counselvise Citation: 130020514 RSA 2010
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-06-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 23-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD B BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER I.T.A. NO.1300/AHD/2010 A. Y. 2006-07 DY. CIT, CIRCLE-5 AHMEDABAD APPELLANT VS. M/S RAAJRATNA METAL INSUSTRIES LTD. 2 ND FLOOR, C.U. SHAH CHAMBERS, ASHRAM ROAD, AHMEDABAD-380 009 RESPONDENT DEPARTMENT BY : MS. SURABHI SHARMA SR. D.R. ASSESSEE BY : MS. URVASHI SHODHAN, A.R. DATE OF HEARING : 04.06.2012 DATE OF PRONOUNCEMENT 04.06.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THIS IS REVENUES APPEAL AGAINST THE ORDER OF LD. C IT(A)-XI, AHMEDABAD DATED 09.02.2010 PASSED IN APPEAL NO.CIT( A)-XI/845/08-09. 2. THE REVENUE, IN THIS APPEAL, IS AGGRIEVED BY TH E ORDER OF LD. CIT(A) IN DELETING THE ADDITION MADE ON ACCOUNT OF DEPRECIATI ON DUE TO REWORKING OF WRITTEN DOWN VALUE AMOUNTING TO RS.11,07,354/-. 3. THE ASSESSING OFFICER, WHILE MAKING THE ADDITIO N, HAS OBSERVED AS UNDER:- I.T.A. NO.1300/AHD/2010 A. Y. 2006-07 2 ON VERIFICATION, IT WAS OBSERVED THAT THE ASSESSEE HAS CLAIMED DEPRECIATION OF RS.8,96,33,356/- IN ITS PROFIT & LO SS A/C. ON FURTHER SCRUTINY OF EARLIER RECORDS, IT WAS FOUND THAT THE ASSESSEE HAS NOT CLAIMED DEPRECIATION ON ALL THE BUSINESS ASSETS IN CONSONANCE WITH THE PROVISIONS OF THE ACT AND AS PER PREVIOUS INCOME-TA X RECORDS, AS SUCH, IN THE EARLIER YEAR, IT HAS NOT BEEN ACCEPTED BY TH E DEPARTMENT AND THE DEPRECIATION HAD BEEN ALLOWED IN PAST ON ALL THE AS SET, WHETHER CLAIMED OR NOT BY THE ASSESSEE FOR THE REASONS DISC USSED IN THE ASSESSMENT ORDER FOR A.Y.1997-98. ACCORDINGLY, THE RE IS DIFFERENCE IN WDV OF THE ASSETS SHOWN BY THE ASSESSEE AND IN THE RESPECTIVE FIGURES SHOWN IN THE INCOME-TAX RECORDS. AS STATED ABOVE, IN THE ASSESSEES CASE, DEPRECIATI ON IS BEING ALLOWED FROM YEAR TO YEAR IRRESPECTIVE OF THE FACT WHETHER IT HAS CLAIMED OR NOT. ACCORDINGLY, FOLLOWING THE ABOVE S TAND CONSISTENTLY TAKEN BY THE DEPARTMENT, THE DEPRECIATION CLAIM FOR THE CURRENT YEAR IS ALSO RESTRICTED TO RS.8,85,26,003/- INSTEAD OF RS.8 ,96,33,356/- AS CLAIMED BY ASSESSEE, CONSIDERING THE WDV OF THE EAR LIER, AS PER I.T. RECORDS. THE WORKING OF THE FIGURE OF ALLOWABLE DE PRECIATION IS ENCLOSED AS PER ANNEXURE-A TO THIS ORDER AND ACCORD INGLY THE EXCESS CLAIM OF DEPRECIATION OF RS.11,07,354/- IS DISALLOW ED AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4. LD. CIT(A) HAS GIVEN RELIEF TO THE ASSESSEE BY FOLLOWING EARLIER ORDER IN IMMEDIATELY PRECEDING ASSESSMENT YEAR 2005-06. 5. AT THE TIME OF HEARING BEFORE US BOTH THE PARTI ES AGREED THAT ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST T HE REVENUE BY THE ORDER OF HONBLE ITAT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2005-06 DATED 10.12.2010 VIDE ITA NO.2185/AHD/2009. THEREFORE, T HE GROUND RAISED BY THE REVENUE IN THIS APPEAL IS DISMISSED. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 04.06.2012 SD/- SD/- (T.R. MEENA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER I.T.A. NO.1300/AHD/2010 A. Y. 2006-07 3 N.K. CHAUDHARY, SR. P.S. / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '# *