Mavin Texturisers Pvt.Ltd., Surat V. The ACIT(OSD-II)Range-1, Surat

ITA 1453/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6054 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-07-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 07-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE S/SHRI D. K. TYAGI, JM AND A. K. GARODIA, AM MAVIN TEXTURISERS (P) LTD., 2 ND FLOOR CORPORATE BUILDING, BOMBAY MARKET, SURAT. VS. ASSTT. CIT (OSD-II), RANGE-1, SURAT. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI HARDIK VORA, AR RESPONDENT BY:- SHRI SAMIR TEKRIWAL, SR.DR O R D E R PER D.K. TYAGI, JUDICIAL MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A)-I, SURAT. THE ONLY EFFECTIVE GROUND TAKEN BY THE ASSESSEE IS AS UNDER :- (1) ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WE LL AS LAW ON THE SUBJECT, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF AO IN DISALLOWING RS.2,61,221/- ON ACCOUNT OF DEPRE CIATION OF PLANT & MACHINERY. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF TWISTING AND TEXTURISING AND ALSO CLOTH MANUFACTURING. DURING THE ASSESSMENT PROCEEDINGS THE AO OBSERVED THAT THE ASSESSEE HAD ITA NO.1453/AHD/2009 ASST. YEAR 2006-07 ITA NO.1453/AHD/2009 ASST. YEAR 2006-07 2 CLAIMED DEPRECIATION @ 50% ON MACHINERIES PURCHASED UNDER TUF SCHEME AND USED ONLY FOR TWISTING. ALL THESE MACHIN ERIES WERE USED FOR THE PURPOSE OF TWISTING OF YARN AND ON THE SAME THE ASSESSEE HAS CLAIMED DEPRECIATION @ 50% IN VIEW OF THE ENTRIES AT SL.NO. 6 OF PART-A(III) OF APPENDIX-I OF I.T.RULES. THE AO ASKED THE ASSESSEE AS TO WHY NORMAL DEPRECIATION BE NOT ALLOWED IN VIEW OF THE FACT THA T AS PER I.T.RULES HIGHER RATE OF DEPRECIATION WAS ALLOWED ONLY AFTER PLANT AND MACHINERY IS PURCHASED UNDER TUF SCHEME AND IS FOR THE PURPOSE O F WEAVING, PROCESSING AND GARMENT SECTOR OF TEXTILE INDUSTRIES . THE AO STATED THAT THE HIGHER RATE OF DEPRECIATION IS NOT AVAILABLE FOR MA CHINERY USED FOR TWISTING TEXTURISING AND MANUFACTURING OF YARN. THE ASSESSEES CONTENTION WAS THAT AS PER THE TEXTILE MINISTRY, ITS MACHINERI ES WERE COVERED BY TUF SCHEME AND THEREFORE, HIGHER RATE OF DEPRECIATI ON IS ALLOWABLE. THE AO DID NOT ACCEPT THIS EXPLANATION AND DISALLOWED T HE EXCESS DEPRECIATION OVER AND ABOVE THE NORMAL RATE. THE DI SALLOWANCE WAS OF RS.2,61,221/-. THIS ACTION OF THE AO WAS CONFIRMED BY THE LD. CIT(A). FURTHER AGGRIEVED, NOW THE ASSESSEE IS IN APPEAL BE FORE US. 3. AT THE TIME OF HEARING, AT THE OUTSET THE LD. CO UNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THIS APPEAL IS NOW COVERED IN FAVOUR OF ASSESSEE BY THE DECISION OF THIS TRIBUNAL IN ASS ESSEES OWN CASE FOR ASST. YEAR 2004-05 AND ASST. YEAR 2005-06 IN ITA NO S.1044/AHD/2007 ITA NO.1453/AHD/2009 ASST. YEAR 2006-07 3 AND 2296/AHD/2008 RESPECTIVELY. THE LD. DR DID NOT OBJECT TO THIS SUBMISSION OF THE LD. COUNSEL. 4. WE, THEREFORE, FOLLOWING THE DECISION OF THIS TR IBUNAL IN THE CASE OF ASSESSEE IN ASST. YEAR 2004-05 & 2005-06 REFERRED A BOVE DIRECT THE AO TO ALLOW DEPRECIATION @ 50%. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER WAS PRONOUNCED IN OPEN COURT ON 27/7/11. SD/- SD/- (A.K. GARODIA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED : 27/7/11 MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD ITA NO.1453/AHD/2009 ASST. YEAR 2006-07 4 1.DATE OF DICTATION 27/7/11. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 27/7/11. /OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..