The Dy. Commissioner of Income Tax, Circle-1(1)(1), Vadodara V. Gujarat Chemical Port Terminal Co. Ltd., Bharuch

ITA 1779/AHD/2016

• Counselvise Citation: [2018] 111 COUNSELVISE.COM (IT) 1934 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 01-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

M/S. GUJARAT CHEMICAL PORT TERMINAL CO. LTD IN ITA NO.1779/A/2016 FOR AY.2012-13 PAGE 1 OF 2 INCOM TAX APPELLATE TRIBUNAL SURAT-BENCH-SURAT BEFORE SHRI C .M. GARG,JUDICIAL MEMBER AND SHRI O. P. MEENA, ACCOUNTANT MEMBER ITA NO.1779/AHD/2016/SRT : ASSESSMENT YEAR: 2012-13 DY. COMMISSIONER OF INCOME - TAX, CIRCLE-1(1)(1), SURAT. V S . M/S.GUJARAT CHEMICAL PORT TERMINAL CO. LTD., PO: LAKHIGAM, VIA DAHEJ, TAL. VAGRA, DIST. BHARUCH 392 130. PAN: AAACG 6861A APPELLANT /RESPONDENT [ /ASSESSEE BY SHRI SANKET BAKSHI, CA /REVENUE BY SHRI R.P.RASTOGI, SR. DR / DATE OF HEARING: 2 2 .0 3 .2018 /PRONOUNCEMENT DATE 23 . 03 .2018 ORDER PER O. P. MEENA, AM THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS)-1, VADODARA DATED 26.04.2016 FOR THE ASSESSMENT YEAR 2012-13. 2. THE SOLE GROUND OF THE REVENUE STATES THAT THE LD.COMMISSIONER OF INCOME TAX(APPEALS) ERRED IN DELETING THE ADDITION MADE ON DISALLOWANCE OF RS.2,96,78,323/- ON ACCOUNT OF EXCESS CLAIM OF DEPRECIATION OF JETTIES AND TRESTLE. 3. THE LD.SENIOR DEPARTMENTAL REPRESENTATIVE RELIED ON THE ASSESSMENT ORDER WHEREAS THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS CLAIMED DEPRECIATION ON JETTIES AND TRESTLE @ 15% INSTEAD OF 10% AS DETERMINED BY THE DEPARTMENT. IT WAS BROUGHT TO OUR NOTICE THAT SIMILAR ISSUE AROSE IN THE CASE OF M/S. GUJARAT CHEMICAL PORT TERMINAL CO. LTD IN ITA NO.1779/A/2016 FOR AY.2012-13 PAGE 2 OF 2 ASSESSEE FOR THE ASSESSMENT YEAR 2002-03 TO 2005-06 VIDE ITAT NOS:3115 TO 3119/AHD/2011, DATED 13.11.2017 WHEREIN THE AHMEDABAD BENCH OF ITAT HAS DELETED THE SAID ADDITION WHILE FINDINGS GIVEN IN PARA 9 ON PAGE 8 OF THE ITAT ORDER (COPY ENCLOSED). 4. WE HAVE HEARD PARTIES AND FIND THAT THE CIT(A) HAS DIRECTED TO ALLOW DEPRECIATION @ 15% ON THE ITEMS BEING JETTIES AND TRESTLE AS AGAINST 10% RESTRICTED BY THE ASSESSING OFFICER ON THE BASIS OF FOLLOWING HIS ORDER DATED 05.06.2015 IN APPEAL NO.CAB/1/180/2014-15 FOR THE ASSESSMENT YEAR 2011-12. WE FIND THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF ITAT, AHMEDABAD IN THE CASE OF ASSESSEE, VIDE ORDER DATED 13.11.2017(SUPRA). HOWEVER, THE LD.COUNSEL CLEARLY CONSENTED THAT DEPRECIATION ALLOWABLE ON JETTIES AND TRESTLE IS 15% AND NOT AS 25% UPHELD BY THE TRIBUNAL VIDE ORDER DATED 13.11.2017. WE FIND THAT CIT(A) HAS ALSO DIRECTED THE ASSESSING OFFICER TO ALLOW THE DEPRECIATION @15% ON THESE ITEMS. CONSIDERING THE TOTALITY OF THE FACTS, WE FIND NO INFIRMITY IN THE ORDER OF THIS LD.CIT(A), ACCORDINGLY SAME IS UPHELD AS CONSEQUENTIALLY THE APPEAL OF THE REVENUE IS THEREFORE DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23.03.2018 SD/- SD/- ( . . [ /C.M. GARG) ( . . / O.P.MEENA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER / SURAT, DATED: 23 RD MARCH, 2018 S.GANGADHARA RAO COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT