DCIT, New Delhi V. M/s. Ceratizit India Pvt. Ltd., New Delhi

ITA 1341/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74059 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-02-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 07-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIDHI SRIVASTAVA
• Keywords: Depreciation
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI) BEFORE SHRI U. B. S. BEDI, JUDICIAL MEMBER AND SHRI B. C. MEENA, ACCOUNTANT MEMBER I.T.A. NO. 1341 /DEL/2013 (ASSESSMENT YEAR 2008-09) DCIT, CIRCLE 3(1), VS. M/S. CERATIZIT INDIA PVT. LTD., NEW DELHI 5 TH FLOOR, KIRTI MAHAL, 19, RAJINDRA PLACE, NEW DELHI. PAN/GIR NO.: AACCC2210P (APPELLANTS) (RESPONDENTS) ASSESSEE BY : SMT. NIDHI SRIVASTAVA, SR. DR DEPARTMENT BY: SHRI V P GUPTA, ADV. ORDER PER U B S BEDI, JUDICIAL MEMBER: THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER PASSED BY LD. CIT(A) - VI, NEW DELHI DATED 30.12.2012 RELEVAN T TO ASSESSMENT YEAR 2008-09 WHEREIN FOLLOWING FOUR EFFECTIVE GROUNDS HA VE BEEN RAISED BY THE REVENUE: 1) WHETHER THE LD. CIT(A) HAS ERRED ON FACTS AND I N LAW IN DELETING THE ADDITION OF RS.27,650/- ON ACCOUNT OF DEPRECIATION ON DESIGN IGNORING THE FACT THAT:- I) THE DRAWING AND DESIGNS OF THE PRESS TOOLS CANNOT B E CONSIDERED AS AN INTANGIBLE ASSET U/S 32 OF THE I. T. ACT, 1961. II) THE DRAWING CAN BE CONSIDERED ON INTANGIBLE ASSET O NLY WHEN THEY ARE PATENTED. 2) WHETHER THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS.20,95,787/- MADE ON ACC OUNT OF COMMISSION IGNORING THE FACT THAT THE ASSESSEE COMP ANY ITSELF I.T.A. NO. 1341/DEL/2013 2 ADMITTED THAT PROVISION FOR COMMISSION HAS BEEN MAD E BUT NOT BEEN CREDITED TO THE ACCOUNT OF LIAISON AGENTS. 3) WHETHER THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING HT ADDITION OF RS.4,40,856/- ON ACCOUNT OF CLUB EXPENDITURE IGNORING THE FACT THAT THE ASSESSEE FAILED TO FURNI SH FULL DETAILS OF THE ACTIVITIES UNDERTAKEN FOR THE PURPOSE OF BUSINESS F URTHERANCE IN THE LIGHT OF THE CLUB EXPENDITURE. 4) WHETHER THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION MADE ON ACCOUNT OF DEPRECIATI ON ON COMPUTER PERIPHERALS AMOUNTING TO RS.18,544/- IGNORING THE F ACT THAT THE COMPUTER AND COMPUTER SOFTWARE ARE ELIGIBLE FOR DEP RECIATION OF 60% AND THE SAME CANNOT BE EXTENDED TO COMPUTER ACCESSO RIES AND PERIPHERALS. 2. LD. COUNSEL FOR THE ASSESSEE HAS FILED A CHART O F GROUNDS RAISED, AMOUNT INVOLVED, RELEVANT PAGES OF ITAT/CIT(A) ORDE RS AND THE REMARKS/ARGUMENTS AND HAS RELIED UPON SUCH CHART WI TH RESPECT TO ALL THE FOUR GROUNDS AND PLEADED THAT ALL THE ISSUES ARE SQUAREL Y COVERED IN FAVOUR OF THE ASSESSEE, THEREFORE, ORDER OF LD. CIT(A) IS PROPER AND JUSTIFIED WHICH SHOULD BE UPHELD. THIS APPEAL OF THE REVENUE MAY BE DISMI SSED. 3. LD. D.R. COULD NOT CONTROVERT THIS FACTUAL ASPEC T AND SUBMITTED THAT HE RELIED UPON THE ORDER OF THE A.O. AND PLEADED FOR D ECIDING THE ISSUE IN ACCORDANCE WITH LAW. 4. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE MATERIAL ON RECORD AS WELL AS PRECEDENT RELIED UPON BY THE ASSESSEE INCOR PORATED IN THE CHART FILED AT PAGES 1 & 2 OF THE PAPER BOOK, WE DECIDE THE ISS UE AS UNDER: 4.1 THE 1 ST ISSUE RELATES TO DEPRECIATION ON DRAWING AND DESIG NS AMOUNTING TO RS.20,650/-, WHICH IS INCORPORATED IN PARA 4 PAGE 4 OF LD. CIT(A)S ORDER AND THE SAME IS FOUND TO BE COVERED IN FAVOUR OF THE ASSESSEE BY ITAT DECISION IN ASSESSEES OWN CASE FOR THE ASS ESSMENT YEAR 2006-07. I.T.A. NO. 1341/DEL/2013 3 SO, THE ORDER OF LD. CIT(A) IN THIS REGARD IS UPHEL D AND THE 1 ST GROUND OF THE REVENUES APPEAL IS DISMISSED. 4.2 AS REGARDS THE 2 ND ISSUE, WHICH RELATES TO PROVISION FOR COMMISSION PAYABLE TO LIAISON AGENT FOR SERVICES RENDERED IN T HE YEAR UNDER CONSIDERATION AMOUNTING TO RS.20,95,787/-. THIS ISSUE IS FOUND T O BE COVERED BY PARA 4.1 AT PAGES 4 & 5 OF LD. CIT(A)S ORDER AND THE SAME I S COVERED BY THE ORDER OF ITAT IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 OF THE PAPER BOOK. AS SUCH, THE ORDER OF LD. CIT(A) IN THIS REG ARD IS ALSO UPHELD AND THIS GROUND OF APPEAL OF THE REVENUE IS ALSO DISMISSED. 4.3 AS REGARDS GROUND NO.3, THE SAME RELATES TO CLU B EXPENSES OF RS.4,40,856/- WHICH ISSUE IS COVERED BY LD. CIT(A) S ORDER AND THE SAME IS FOUND TO BE DISCUSSED IN PARA 8 PAGE 10 OF CIT(A)S ORDER. THE SAID ISSUE IS FOUND TO BE COVERED BY THE ORDER OF LD. CIT(A) FOR THE ASSESSMENT YEAR 2006-07 (AS MENTIONED IN PAGE 17 OF THE PAPER BOOK) . THE SAID DECISION WAS ACCEPTED BY THE DEPARTMENT AND NO APPEAL WAS FILED BEFORE ITAT IN THIS REGARD. OTHERWISE, THIS ISSUE IS STATED TO BE COVE RED BY THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF CIT VS UNITED GLASS MANUFACTURING CO. LTD., CIVIL APPEAL NO.6447 OF 2012 DECIDED ON 1 2.09.2012, THEREFORE, THIS ISSUE IS ALSO HELD TO BE COVERED AND THE ORDER OF LD. CIT(A) ON THIS ISSUE IS UPHELD AND THE GROUND OF THE REVENUE IN THIS REG ARD IS DISMISSED. 4.4 AS REGARDS THE LAST GROUND, IN REGARD TO THE DE PRECIATION ON THE COMPUTER ACCESSORIES AND PERIPHERALS AMOUNTING TO R S.18,544/- IS CONCERNED, THIS ISSUE IS FOUND TO BE DISCUSSED IN P ARA 10 PAGES 11 & 12 OF LD. CIT(A)S ORDER AND THE SAME IS FOUND TO BE COVE RED BY LD. CIT(A)S ORDER FOR THE ASSESSMENT YEAR 2006-07 (PAGES 18 & 1 9 OF THE PAPER BOOK), THE SAME WAS ACCEPTED BY THE DEPARTMENT AND NO APPE AL WAS FILED BEFORE THE I.T.A. NO. 1341/DEL/2013 4 ITAT AND HENCE, THIS ISSUE IS ALSO COVERED BY THE D ECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. BSES RAJDHANI POW ERS LTD. DATED 31.08.2010 IN I.T.A. NO. 1266/2010 AND CIT VS ORIEN T CERAMICS AND INDUSTRIES LTD. (2011) TMI 201763. THEREFORE, THIS ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND THE APPEAL OF THE REVENU E ON THIS SCORE IS ALSO DISMISSED. 5. AS A RESULT, APPEAL OF THE REVENUE GETS DISMISSE D. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH FEB., 2014. SD./- SD./- (B. C. MEENA) (U.B.S.BEDI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 14 TH FEB., 2014. SP. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XXV, NEW DELHI AR, ITAT, 5. CIT(ITAT), NEW DELHI NEW DELHI