USG Boral Building Products(India) Pvt. Ltd.,(Formerly Known as Boral Gypsum India Pvt. Ltd.), Gurgaon V. DCIT, New Delhi

ITA 1786/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9847 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 05-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K AGGARWAL
• Keywords: Depreciation
• Section: 143(3); 154

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI F BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA , ACCOUNTANT MEMBER, AND SHRI K.N. CHARY, JUDICIAL MEMBER ITA NO. 1786 /DEL/201 6 [ASSESSMENT YEAR: 20 09 - 10 ] USG BORAL BUILDING PRODUCTS [INDIA] VS. THE D .C. I.T. PVT LTD., [FORMERLY KNOWN AS BORAL CIRCLE - 3 ( 1 ) GYPSUM INDIA PVT LTD NEW DELHI VIPUL TRADE CENTRE, 610 - 613, SIXTH FLOOR, SOHNA ROAD, GURGAON PAN : AABCL 1984 A [APPELLANT] [RESPONDENT] DATE OF HEARING : 02 . 0 4 .201 9 DATE OF PRONOUNCEMENT : 0 3 .0 4 .201 9 ASSESSEE BY : SHRI S.K. AGGARWAL , CA . REVENUE BY : S HRI SURENDRA PAL , SR. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - 2 , NEW DELHI DATED 29 . 0 1 .201 6 PERTA INING TO ASSESSMENT YEAR 20 09 - 10 . 2 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) ERRE D IN NOT APPRECIATING THAT DEPRECIATION IN RESPECT OF ELECTRICAL EQUIPMENT WAS CORRECTLY CLAIMED @ 15% AGAINST WHICH ERRONEOUSLY 5% OF DEPRECIATION OF RS. 4,00,158/ - WAS DISALLOWED IN THE ASSESSMENT ORDER WHILE DISALLOWING THE DEPRECIATION IN RESPECT OF EL ECTRICAL FITTINGS. 3. THE ROOTS FOR THE GRIEVANCE LIE IN THE ASSESSMENT ORDER DATED NIL FRAMED U/S 143(3) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT'. WHILE EXAMINING THE CLAIM OF DEPRECIATION ON ELECTRICAL FITTINGS, CLAIMED @ 15%, THE ASSESSING OFFICER W AS OF THE OPINION THAT DEPRECIATION IS ALLOWABLE ON FURNITURE AND FITTINGS INCLUDING ELECTRICAL FITTINGS @ 10%. ACCORDINGLY, DEPRECIATION ON ELECTRICAL FITTINGS WAS ALLOWED @ 10% AS AGAINST CLAIM OF THE ASSESSEE AT 15%. 4. HOWEVER, WHILE DISALLOWING TH E CLAIM OF DEPRECIATION ON ELECTRICAL FITTINGS, THE ASSESSING OFFICER ALSO DISALLOWED DEPRECIATION ON ELECTRICAL EQUIPMENT ALSO. THE ASSESSEE 3 MOVED A RECTIFICATION APPLICATION U/S 154 OF THE ACT , WHICH WAS DISMISSED BY THE ASSESSING OFFICER. 5. THE ASS ESSEE CARRIED THE MATTER BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. 6. BEFORE US, THE LD. AR DREW OUR ATTENTION TO THE DETAILS OF ELECTRICAL EQUIPMENT AND VEHEMENTLY STATED THAT THESE EQUIPMENTS ARE PART AND PARCEL OF THE PLANT AND MACHINERY AND, THEREFOR E, THE ASSESSEE HAS CORRECTLY CLAIMED DEPRECIATION @ 15% AND THE ASSESSING OFFICER , WHILE DISALLOWING DEPRECIATION ON ELECTRICAL FITTINGS HAS ERRONEOUSLY DISALLOWED DEPRECIATION ON ELECTRICAL EQUIPMENT ALSO. 7. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. THE DETAILS OF ELECTRICAL EQUIPMENT S I S EXHIBITED AT PAGE 78 OF THE PAPER BOOK AND THE SAME IS AS UNDER: 4 DETAILS OF ELECTRICAL EQUIPMENTS ITEM DETAILS ' SUPPLIER AMOUNT (RS.) YIJA* CLASSIFICATI ON MOTOR 20,000 LTR PER HR CAP AAGARWAL HARDWARE AND ELECTRIC STORE 19,796 ELECTRICAL MACHINERY SUPPLY OF C 1 BUTTERFLY VALUES AASTHA ENGINEERS 4,903 ELECTRICAL MACHINERY WATER SUPPLY PIPE S.S DHARAMVCER AND COMPANY 23,550 ELECTRICAL MACHINERY ELECTRICAL EQUIPMENT FOR ADDITIONAL WORK ELECTRICAL CONTROL SYSTEMS 31,077 ELECTRICAL MACHINERY TELEMECHANIQUE BREAKERS ELECTRICAL CONTROL SYSTEMS 22,427 ELECTRICAL MACHINERY MPCB (MOTOR PROTECTIVE CIRCUIT BREAKER) - GV2 ME10. CVAE11 ELECTRICAL CONTROL SYSTEMS 29,219 ELECTRICAL MACHINERY AC DRIVE - ATV31HU15N4A ELECTRICAL CONTROL SYSTEMS 21,183 ELECTRICAL MACHINERY SUPPLY OF ELECTRICAL ITEMS (CONTACTOR/BREAKER/RELAY ETC) ELECTRICAL CONTROL SYSTEMS 11,793 ELECTRICAL MACHINERY LABOUR CHARGES FOR ERECTION OF LATICE TOWER,CT/PT UNIT GUPTA ELECTRICALS 78,000 ELECTRICAL MACHINERY TRANSFROMER 2000 KVA , OLTC TYPE INDIAN TRANSFORMERS & ELECTRICALS 1,784,656 ELECTRICAL MACHINERY EPOXY BUSHING - JOB WORK INDIAN TRANSFORMERS & ELECTRICALS 16,490 ELECTRICAL MACHINERY FOR HYDRONEUMATIC SYSTEM MODEL; MULTI - H - 804 T EM02(200), CONTROL PANEL, SWITCHES, BALL VALVE, GAUGE KANBE WATER TECH PVT LTD 133,900 ELECTRICAL MACHINERY MANUFAC TURING AND SUPPLY OF LT PANEL WITH ABB MADHU ELECTRICALS 2,668,728 ELECTRICAL MACHINERY LT CABLE SURYA ELECTRICALS 636,779 ELECTRICAL MACHINERY HT CABLE, INDUSTRIAL CABLE 11000 VOLTS AILUMINIUM ARMD. SURYA ELECTRICALS 386,461 ELECTRICAL MACHINERY INDUSTRIAL CABLE 1100 V COPPER ARMD 16 SQMM 4 CORE HAVELLS MAKE SURYA ELECTRICALS 62,874 ELECTRICAL MACHINERY PC USB PORT TO SLC 5/03,5/04,5/05, (RS232 PORT) COMMUNICATION HARDWARE ENGINEERS & ENGINEERS (ELECTRICALS) PVT. LTD. 312,944 ELECTRICAL MACHINERY COMMON COST ALLOCATION 1,758376 ELECTRICAL MACHINERY TOTAL 8,003,156 5 INDUSTRIAL CABLE 100 V CO P P E R ARMD1 SQMM 4 CORE HAVELIS MAKE SURYA ELECTRICALS 62,874 ELECTRICAL MACHINERY PV USB PORT TO SLC 5/03, 5/04, 5/05 [RS232] COMMUNICATION HARDWARE ENGINEERS & ENGINEERS [ELECTRICALS] PVT LTD 312,944 ELECTRICAL MACHINERY COMMON COST ALLOCATION 1,758,376 ELECTRICAL MACHINERY 1,7758,376 ELECTRICAL MACHINERY 8. A PERUSAL OF THE ABOVE REVEALS THAT THESE EQUIPMENTS ARE PART AND PARCEL OF THE PLANT AND MACHINERY AND, THEREFORE, ELIGIBLE FOR DEPRECIATION @ 15%. WE, ACCORDINGLY, DIRECT THE ASSESSING OFFICER TO ALLOW DEPRECATION @ 15% ON THE ELECTRICAL EQUIPMENT. 4 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . THE ORDER IS PRON OUNCED IN THE OPEN COURT ON 0 3 . 0 4 .201 9 . S D / - S D / - [ K.N. CHARY ] [N.K. BILLAIYA] J UDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 3 R D APRIL , 2019. 6 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER