The DCIT, Circle-2, Surat V. M/s. Vijaypataka Synthetics, Surat

ITA 1886/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85704 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 28-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: SUNIL KEDIA
• Keywords: Depreciation; Additional depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI ACCOUNTANT MEMBER ITA NO . 1 886 /AHD/20 1 1 A. Y. 200 8 - 0 9 DYCIT, CIRCLE - 2, SURAT. VS M/S . VIJAYPATAKA SYNTHETICS, 1 - 191, GIDC, SACHIN, SURAT. PAN: AA F F V 8455M (APPELLANT) (RESPONDENT) C . O . NO. 217 /AHD/2011 A.Y.200 8 - 09 M/S . VIJAYPATAKA SYNTHETICS, 1 - 191, GIDC, SACHIN, SURAT. PAN: AAFFV 8455M VS DYCIT, CIRCLE - 2, SURAT. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI DINESH SINGH , SR.D.R. ASSESSEE(S) BY : SHRI SUNIL KEDIA, A.R. / DATE OF HEARING : 1 3 / 0 2 /201 5 / DATE OF PRONOUNCEMENT: 20 / 0 2 /201 5 / O R D E R PER MUKUL KUMAR SHRAWAT , JUDICIAL MEMBER THE REVENUE IS IN APPEAL AND THE ASSESSEE IS IN CROSS OBJECTION ARISING FROM THE ORDER OF LEARNED CIT(A) - II , SURAT , DATED 3 0 .0 5 .2011. THE REVENUE HAS OBJECTED THE GRANT OF ADDITIONAL DEPRECIATION U/S.32(1)(IIA). 2. FACTS IN BRIEF AS EM ERGED FROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S.143(3) DATED 30 TH OF SEPTEMBER, 2010 WERE THAT THE ASSESSEE - FIRM IS IN EMBROIDERY WORK ON FABRICS . THE ASSESSEE HAS CLAIMED 20% ITA NO. 1886 /AHD/201 1 & CO NO. 217 /AHD/2011 M/S. VIJAYPATAKA SYNTHETICS, SURAT FOR A.Y. 200 8 - 0 9 - 2 - ADDITIONAL DEPRECIATION ON MACHINERY INSTALLED, WHICH WAS DISALLOWED BY THE AO. WE HAVE BEEN INFORMED THAT THE ASSESSEE HAS QUOTED AN ORDER OF THE TRIBUNAL IN RESPECT OF THE CLAIM WHICH WAS ALSO NOT CONSIDERED BY THE AO. 3. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY, LEARNED CIT(A) HAS CONSIDERED FEW ORDER S OF THE TRIBUNAL AND HELD THAT THE ISSUE HAS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE; THEREFORE, DIRECTED TO ALLOW THE CLAIM. 4. HAVING HEARD THE SUBMISSIONS OF BOTH THE SIDES, WE ARE OF THE VIEW THAT THIS ISSUE IS NOW COVERED BY THE DECISION OF ITAT A BENCH AHMEDABAD PRONOUNCED IN THE CASE OF M/S. HARI FASHIONS (ITA NO.3105/AHD/2010) A.Y.2007 - 08 ORDER DATED 27.05.2011 WHEREIN THE DECISION OF HON BLE ITAT SMC AHMEDABAD PRONOUNCED IN THE CASE HARI P RIYA PROCESSOR PVT. LTD. (ITA NO.1569/AHD/2 010 ORDER DATED 8.9.2009) WAS FOLLOWED AND HELD THAT IN A SITUATION WHEN THE ASSESSEE IS IN THE BUSINESS OF EMBROIDERY PROCESSING AND FOR THAT MACHINERY WAS INSTALLED THEN HE IS ENTITLED FOR ADDITIONAL DEPRECIATION U/S.32(1)(IIA). WE HAVE ALSO NOTED THAT T HE HON BLE APEX COURT IN THE CASE OF S.S. & BROTHERS PVT. LTD. , 243 ITR 418 (SC) HAS ALSO HELD THAT A MACHINERY USED FOR THE PRODUCTION OF EMBROIDERY IS ENTITLED FOR THE DEVELOPMENT RE BATE THEREFORE APPLYING THE SAME LEGAL RATIO T HE TRIBUNAL HAS HELD THAT SUCH TYPE OF MACHINERY IS ALSO ENTITLED FOR ADDITIONAL DEPRECIATION. DUE TO ALL THESE REASONS, WE FIND NO FORCE IN THE GROUNDS RAISED BY THE REVENUE AND THE SAME ARE HEREBY DISMISSED. ITA NO. 1886 /AHD/201 1 & CO NO. 217 /AHD/2011 M/S. VIJAYPATAKA SYNTHETICS, SURAT FOR A.Y. 200 8 - 0 9 - 3 - 5. THE CROSS OBJECTION S FILED BY THE RESPONDENT - ASSESSEE ARE ONLY IN SU PPORT OF THE VIEW TAKEN BY LEARNED CIT(A). SINCE, NO LEGAL/FACTUAL QUESTION HAS BEEN RAISED FOR ADJUDICATION ; HENCE CROSS OBJECTION IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. SD/ - SD/ - (A NIL CHATURVEDI ) (MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 20 / 0 2 / 20 1 5 PRABHAT KR. KESARWANI , SR. P . S . S / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD