AMOL DICALITE LTD., Ahmedabad V. THE Addl.CIT.,Range-1, Ahmedabad

ITA 1537/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6617 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 09-05-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 14-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAVNESH KULSHRESTHA
• Keywords: Depreciation; Additional depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. K. GARODIA , AM) ITA NO.1537/AHD/2009 A. Y.: 2005-06 AMOL DICALITE LTD., 301, AKSHAY, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD VS THE ADDL. C. I. T., RANGE 1, AHMEDABAD PA NO. AABCA 2807 K (APPELLANT) (RESPONDENT) APPELLANT BY SMT. URVASHI SHODHAN, AR RESPONDENT BY SHRI BHAVNESH KULSHRESTHA, SR. DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-VI , AHMEDABAD DATED 19-02-2009 FOR ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE IN ITS APPEAL CHALLENGED THE DISALL OWANCE OF RS.1,91,428/- OUT OF DEPRECIATION CLAIM MADE ON DUS T COLLECTOR, DISALLOWANCE OF DEPRECIATION OF RS.10,70,497/- OUT OF CLAIM OF DEPRECIATION MADE ON PURCHASE OF NEW DUST COLLECTOR AND CHALLENGED FURTHER ADDITION OF RS.2,92,077/- BEING CLAIM BY WA Y OF ADDITIONAL DEPRECIATION ON PURCHASE AND INSTALLATION OF NEW DU ST COLLECTOR DURING THE YEAR. ITA NO.1537AHD/2009 AMOL DICALITE LTD. VS ADDL. CIT, RANGE-1, AHMEDABAD 2 3. THE AO BY FOLLOWING THE ORDER FOR ASSESSMENT YEA R 2004-05 NOTED THAT THE ASSESSEE CLAIMED DEPRECIATION ON DUS T COLLECTOR (BAG HOUSE) @80%, HOWEVER, THE AO ALLOWED DEPRECIATION @ 25%. FURTHER, THE ASSESSEE PURCHASED DUST COLLECTOR DURI NG THE YEAR AT RS.7,42,903/- AND USED FOR MORE THAN 180 DAYS AND R S. 24,08,551/- USED FOR LESS THAN 180 DAYS ON WHICH DEPRECIATION I S CLAIMED @ 80%. THE AO FOLLOWING THE ORDER FOR ASSESSMENT YEAR 2004 -05 RESTRICTED THE CLAIM OF DEPRECIATION @25% AND @ 12.5% RESPECTI VELY AND MADE THE ADDITIONS OF RS.1,91,428/- AND RS.10,70,947/-. THE ASSESSEE FURTHER CLAIMED ADDITIONAL DEPRECIATION @15% AT RS. 2,92,077/- ON DUST COLLECTOR WHICH WERE DISALLOWED BEING ON DUST COLLECTOR EXTENSION IS NOT POSSIBLE. ADDITION WAS ACCORDINGLY MADE. THE LEARNED CIT(A) FOLLOWING THE ORDER FOR ASSESSMENT Y EAR 2004-05 REJECTED THE CLAIM OF HIGHER DEPRECIATION AND FOR ADDITIONAL DEPRECIATION, APPEAL OF THE ASSESSEE WAS DISMISSED BECAUSE FOR DUST COLLECTOR CAPACITY CANNOT BE INCREASED. 4. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT IN THE PRECEDING ASSESSMENT YEAR 2004-05, THE APPEAL OF THE ASSESSEE WAS ALLOWED FOR STATISTICAL PURPOSES BY TH E TRIBUNAL AND THE MATTER IS RESTORED TO THE FILE OF THE AO ON THE IDE NTICAL ISSUE IN ITA NO.892/AHD/2009 VIDE ORDER DATED 11-09-2009. THE AO IN THE SET ASIDE PROCEEDINGS ALLOWED THE CLAIM OF THE ASSESSEE VIDE ORDER DATED 30-08-2010 U/S 143(3) READ WITH SECTION 254 OF THE IT ACT. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDER OF THE AO. ITA NO.1537AHD/2009 AMOL DICALITE LTD. VS ADDL. CIT, RANGE-1, AHMEDABAD 3 5. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW THE MATTER REQUIRES RECONSIDERATION BY THE AO. THE AO F OLLOWED THE FINDINGS OF THE ASSESSMENT YEAR 2004-05 FOR DENYING THE DEPRECIATION TO THE ASSESSEE. IN THE ASSESSMENT YEAR 2004-05, TH E TRIBUNAL RESTORED THE MATTER TO THE FILE OF THE AO FOR RECON SIDERATION AND THE AO AFTER RE-EXAMINING ALLOWED THE CLAIM OF THE ASSE SSEE FOR HIGHER DEPRECIATION. THE AO WITH REGARD TO ADDITIONAL DEPR ECIATION HAS NOT GIVEN ANY SPECIFIC FINDING WITH REGARD TO EXTENSION CAPACITY OF THE DUST COLLECTOR. EVEN, THE LEARNED CIT(A) HAS ALSO N OT GIVEN ANY FINDING ON THE SAME. THEREFORE, THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE AO. WE ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE ALL THE THREE ISSUES TO THE FILE OF THE AO WITH DIRECTION TO ALLOW CLAIM OF THE ASSESSEE FOR H IGHER DEPRECIATION ON DUST COLLECTOR AFTER DUE VERIFICATION AS IS ALL OWED IN ASSESSMENT YEAR 2004-05. THE AO IS FURTHER DIRECTED TO RECONSI DER THE ISSUE OF ADDITIONAL DEPRECIATION AND SHALL PASS REASONED ORD ER ON THE SAME BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES AS IS DIRECTED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 13-05-2011 SD/- SD/- (A. K. GARODIA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 13-05-2011 LAKSHMIKANT/- ITA NO.1537AHD/2009 AMOL DICALITE LTD. VS ADDL. CIT, RANGE-1, AHMEDABAD 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD