DCIT, Ernakulam V. Kairali Plastics, Cochin

ITA 19/COCH/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52265 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2011
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 17-10-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 13-01-2010
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND SANJAY AROR A, AM I.T.A NO. 19/COCH/2010 ASSESSMENT YEAR:2003-04 THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-2(1), ERNAKULAM. VS. KAIRALI PLASTICS, AC STORES BUILDING, JEWS STREET, KOCHI-682 031. [PAN:AAEFA 3292N] (REVENUE-APPELLANT) (ASSESSEE-RESPONDENT) REVENUE BY MS. S.VIJAYAPRABHA, JR. DR ASSESSEE BY NONE ARGUMENT NOTE FILED DATE OF HEARING 17/10/2011 DATE OF PRONOUNCEMENT 21/10/2011 O R D E R PER SANJAY ARORA, AM: THIS IS AN APPEAL BY THE REVENUE ARISING OUT OF TH E ORDER BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, KOCHI (CIT(A) FOR SHORT) DATED 30/10/2009, AND THE ASSESSMENT YEAR (A.Y.) UNDER REFERENCE IS 2003-04. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSM ENT WAS CONCLUDED ON 31.01.2006 VIDE ORDER U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (`THE ACT HEREINAFTER), BY ALLOWING THE ASSESSEES CLAIM FOR DEPRECIATION AT ` 38,18,911/-. NOTICE U/S. 154 WAS ISSUED SUBSEQUENTLY TO REDUCE THE DEPRECIATION ON ELECTRIC AL FITTINGS, ALLOWED AT 25%, TO 15%; THE SAME FORMING PART OF AN INDEPENDENT ENTRY UNDER THE HEAD `FURNISHINGS AND FITTINGS (SPECIFIED TO INCLUDE ELECTRICAL FITTINGS) IN THE D EPRECIATION SCHEDULE (APPENDIX I) UNDER I.T.A. NO.19 /COCH/2010 (ASSTT. YEAR: 2003-04) 2 RULE 5 OF INCOME TAX RULES, 1962. THE ASSESSMENT ST OOD REVISED VIDE ORDER U/S. 154 DATED 10/10/2007, DISALLOWING THE SAID DEPRECIATION TO THE EXTENT OF THE EXCESS, WHICH WORKS TO ` 58,723/-. IN APPEAL, THE ASSESSEE FOUND FAVOUR WIT H THE LD. CIT(A) ON THE BASIS THAT ELECTRICAL FITTINGS, LIKE SWITCHES, MCVS, ETC. ARE INTEGRAL TO THE RUNNING OF THE MACHINERY, SO THAT THESE ARE TO BE CONSIDERED AS PA RT THEREOF AND, CONSEQUENTLY, ENTITLED TO THE RATE OF DEPRECIATION PRESCRIBED FOR PLANT AND M ACHINERY, I.E., UNDER THE GENERAL CATEGORY, AT 25%. AGGRIEVED, THE REVENUE IS IN APP EAL. 3. WE FIND THAT THE LD. CIT(A) HAS GIVEN A DEFINITE BASIS FOR ALLOWING THE ASSESSEES CLAIM, AND WHICH IS, WITHOUT DOUBT, A PLAUSIBLE VIE W. THE PRESENT PROCEEDINGS ARE U/S. 154 OF THE ACT, WHICH PRECLUDE ADMISSION OF ANY POI NT WHICH IS DEBATABLE. WE ARE, THEREFORE, DISINCLINED TO INTERFERE WITH HIS ORDER IN-AS-MUCH AS THE RECTIFICATION EFFECTED BY THE REVENUE IS ON AN ISSUE ON WHICH THERE COULD BE CONCEIVABLY TWO VIEWS. WE DECIDE ACCORDINGLY. 4. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . SD/- SD/- (N.R.S.GANESAN) (SANJAY ARORA) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 21ST OCTOBER, 2011 GJ COPY TO: 1. KAIRALI PLASTIC INDUSTRIES, AC STORES BUILDING, JEWS STREET, KOCHI - 682 031. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2( 1), ERNAKULAM. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, KOC HI. 4. THE COMMISSIONER OF INCOME-TAX, KOCHI. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE .