ACIT, Coimbatore V. M/s. Vetal Textiles and Electronics Private Limited, Coimbatore

ITA 1691/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0840 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-02-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 03-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ------- ITA NO. 1691/MDS/2012 ASSESSMENT YEAR : 2004-05 THE ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-I(1), COIMBATORE. V. M/S. VETAL TEXTILES AND ELECTROCNICS PVT. LTD., NO.1, INDUSTRIAL ESTATE, CIVIL AERODROME POST, COIMBATORE-641 018. (PAN : AAACV6385J) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHOK KUMAR, CIT-DR RESPONDENT BY : NONE DATE OF HEARING : 13.0 2.2013 DATE OF PRONOUNCEMENT : 13.02.201 3 O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE CIT(APPEALS)-I, COIMBATORE DATED 13-06-2012 FOR THE ASSESSMENT YEAR 2004-05. ITA NO.1691/MDS /2012 : 2 : 2. BRIEF FACTS ARE THAT THE ASSESSEE COMPANY CLAIMED HIGHER DEPRECIATION ON WIND MILL. THE ASSESSING OFFICER O BSERVED THAT THE ASSESSEE HAS CLAIMED THE HIGHER DEPRECIATION ON WIND MILL WITHOUT EXERCISING THE OPTION IN WRITING BEFORE THE DUE DATE OF FILING THE RETURN AS SPECIFIED IN RULE 5(1A). THE ASSESSING OFFICER ACCORDINGLY DISALLOWED THE CLAIM OF THE ASS ESSEE FOR HIGHER DEPRECIATION. 3. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MAT TER BEFORE THE CIT(APPEALS). THE CIT(APPEALS) HAS ALLO WED THE APPEAL FILED BY THE ASSESSEE BY OBSERVING THAT THE ISSUE INVOLVED IN THIS APPEAL IS COVERED BY THE DECISION OF THE TRIBUNAL IN THE CASE OF K.K.S.K. LEATHER PROCESSORS (P) LTD. V. ITO (2010) 126 ITD 215 (CHENNAI) AND RELIEF WAS GR ANTED. 4. ON BEING AGGRIEVED, THE REVENUE HAS CARRIED THE MATTER BEFORE THE TRIBUNAL. NONE APPEARED ON BEHALF OF TH E ASSESSEE. THE LEARNED DR ONLY RELIED ON THE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORD S AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS WHETHER THE ASSESS EE IS ELIGIBLE FOR CLAIM OF HIGHER DEPRECIATION OR NOT. THE VERY SIMILAR ISSUE ITA NO.1691/MDS /2012 : 3 : HAS BEEN CONSIDERED BY THE TRIBUNAL IN THE CASE OF K.K.S.K. LEATHER PROCESSORS (P) LTD. (SUPRA) AND THE TRIBUNA L HAS ELABORATELY DISCUSSED AND HELD THAT SINCE THERE IS NO SPECIFIC FORM OR METHOD PRESCRIBED FOR EXERCISING OPTION, TH E CLAIM MADE IN THE RETURN OF INCOME AS WELL AS REFLECTED F ROM BOOKS OF ACCOUNT AND AUDIT REPORT FILED ALONG WITH THE RE TURN OF INCOME WAS MORE THAN EXERCISE OF OPTION AS REQUIRED UNDER SECOND PROVISO TO RULE 5(1A) AND ACCORDINGLY THE AS SESSEE WAS HELD TO BE ENTITLED TO HIGHER RATE OF DEPRECIATION. IN VIEW OF THE DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUN AL, WE DISMISS THE REVENUES APPEAL. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THE 13 TH OF FEBRUARY, 2013, AT CHENNAI. SD/- SD/- (ABRAHAM P. GEORGE) (V.DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 13 TH FEBRUARY, 2013. H. COPY TO: ASSESSEE/AO/CIT(A)/CIT/D.R./GUARD FILE