ACIT, Cochin V. M/s.Metrolla Steels Ltd, Muvattupuzha

ITA 2/COCH/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68991 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-07-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 03-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R KRISHNA IYER
• Keywords: Capital asset; Depreciation; Revenue expenditure; Capital expenditure
• Section: 37(1); 32

Judgement Text

1 ITA NO.02/COCH/2013 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 02/COCH/2013 (ASSESSMENT YEAR 2009-10) A.C.I.T., CIR.1(2) VS M/S METROLLA STEELS LTD KOCHI MADAPARAMBIL CHAMBERS M.C. ROAD, T.B. JUNCTION MUVATTUPUZHA KERALA 686 661 PAN : AABCM5996K (APPELLANT) (RESPONDENT) I.T.A NO. 19/COCH/2013 (ASSESSMENT YEAR 2009-10) M/S METROLLA STEELS LTD VS ACIT, CIR.1(2) MUVATTUPUZHA, KOCHI KOCHI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R KRISHNA IYER REVENUE BY : SHRI M ANIL KUMAR, CIT / SMT. S VIJAYAPRABHA DATE OF HEARING : 09-07-2013 DATE OF PRONOUNCEMENT : 27-09-2013 O R D E R PER N.R.S. GANESAN (JM) BOTH REVENUE AND ASSESSEE FILED THE PRESENT APPEAL S AGAINST THE VERY SAME ORDER OF CIT(A)-III, KOCHI DATED 31-12-20 12 FOR THE ASSESSMENT 2 ITA NO.02/COCH/2013 YEAR 2009-10. THEREFORE, WE HEARD BOTH THE APPEALS TOGETHER AND DISPOSE OF THEM BY THIS COMMON ORDER. 2. LET US FIRST TAKE REVENUES APPEAL IN ITA NO.02/ COCH/2013. THE ONLY ISSUE ARISES FOR CONSIDERATION IN THIS APPEAL IS AD DITION OF RS.5,28,80,427 TO THE CLOSING STOCK. 3. SMT. S VIJAYAPRABHA, THE LD.DR SUBMITTED THAT IN THE NOTES FORMING PART OF THE BALANCE-SHEET THE ASSESSEE HAS STATED T HAT THE CLOSING STOCK OF INGOTS OF 116 TONNES EXCLUDES 2,235 TONNES OF BOUGH T OUT INGOTS LYING IN THE ROLLING DIVISION VALUED AT RS.5,28,80,427. ACC ORDING TO THE LD.DR, SINCE THIS WAS LYING AS A STOCK IN THE ROLLING DIVISION, HAS TO BE ADDED TO THE CLOSING STOCK. ACCORDING TO THE LD.DR, AS ON 31-03 -2009, 2,235 TONNES OF BOUGHT OUT INGOTS WERE LYING AS STOCK. HOWEVER, TH E ASSESSEE HAS DISCLOSED ONLY 116 TONNES OF INGOTS IN THE CLOSING STOCK. ACCORDING TO THE LD.DR, THE CLOSING STOCK HAS TO BE VALUED AS ON 31- 03-2009. THEREFORE, THE VALUE OF THE CLOSING STOCK WHICH WAS LYING IN T HE ROLLING DIVISION WAS VALUED AND THE SAME WAS ADDED TO THE TOTAL INCOME B Y THE ASSESSING OFFICER. ACCORDING TO THE LD.DR, THE CIT(A) WITHOU T ANY SUFFICIENT MATERIAL DELETED THE ADDITION. 3 ITA NO.02/COCH/2013 4. ON THE CONTRARY, SHRI R KRISHNA IYER, THE LD.REP RESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS TWO DIVISI ONS. ONE IS ROLLING STEEL DIVISION AND THE OTHER MELTING STEEL DIVISION . IN THE MELTING STEEL DIVISION, THE SCRAP IRON PURCHASED BY THE ASSESSEE WAS CONVERTED INTO M.S. INGOTS WHICH AGAIN USED AS RAW MATERIAL FOR TH E ROLLING STEEL DIVISION. IN ADDITION TO OWN PRODUCTION OF M.S. INGOTS, THE A SSESSEE ALSO PURCHASED M.S. INGOTS FROM OUTSIDE SUPPLIERS. ACCORDING TO T HE LD.REPRESENTATIVE, THE ASSESSEE USED OWN M.S. INGOTS AND INGOTS PURCHASED FROM OUTSIDE PARTIES IN THE PRODUCTION OF M.S. RODS AND M.S. STEELS. 5. THE LD.REPRESENTATIVE FOR THE ASSESSEE FURTHER S UBMITTED THAT IN THE AUDIT REPORT, UNDER HEAD SCHEDULE K NOTES FORMI NG PART OF THE BALANCE SHEET AS ON 31.3.2009 AT ITEM NO.10 IT WAS STATED THAT CLOSING STOCK OF INGOTS 116 TONNES EXCLUDES 2235 TONNES OF BOUGHT OU T INGOTS LYING IN ROLLING DIVISION VALUED AT RS.5,28,80,427. UNDER T HE HEAD SCHEDULE G SR.NO.2A TO PROFIT & LOSS ACCOUNT 116 TONNES OF CLO SING STOCK OF M.S. INGOTS WAS SHOWN. ACCORDING TO THE LD.REPRESENTATI VE, THE CLOSING STOCK DISCLOSED IN SCHEDULE G TO THE PROFIT & LOSS ACCO UNT DOES NOT INCLUDE 2235 TONNES OF CLOSING STOCK OF BOUGHT OUT INGOTS W HICH WAS DISCLOSED IN SCHEDULE H OF THE PROFIT & LOSS ACCOUNT. REFERRI NG TO THE COPY OF SCHEDULE H TO THE PROFIT & LOSS ACCOUNT, THE LD.REPRESENTA TIVE SUBMITTED THAT IN SCHEDULE D TO THE PROFIT & LOSS ACCOUNT, THE INGO TS WAS DISCLOSED AT 4 ITA NO.02/COCH/2013 RS.5,44,75,975. REFERRING TO SCHEDULE II TO THE PR OFIT & LOSS ACCOUNT, THE LD.REPRESENTATIVE SUBMITTED THAT THE VALUE OF THE R AW MATERIAL WAS ARRIVED AT RS.130,02,74,299. FOR ARRIVING AT THE CONSUMPTI ON, THE ASSESSEE HAS REDUCED THE CLOSING STOCK OF RS.5,44,75,975. THIS RS.5,44,75,975 INCLUDES REROLLING SCRAP TO THE EXTENT OF RS.15,95,548 AND T HE BOUGHT OUT M.S. INGOTS TO THE EXTENT OF RS.5,28,80,427. THIS WAS S HOWN IN SCHEDULE II TO THE PROFIT & LOSS ACCOUNT. THEREFORE, FOR ARRIVING AT THE CONSUMPTION OF RAW MATERIAL, THE AVAILABLE CLOSING STOCK OF THE RAW MA TERIAL WAS REDUCED TO THE EXTENT OF RS.5,44,75,975 WHICH INCLUDES THE BOUGHT OUT INGOTS TO THE EXTENT OF RS.5,28,80,427. THE COST OF MATERIALS WHICH WER E DISCLOSED IN SCHEDULE II TO THE PROFIT & LOSS ACCOUNT WAS BROUGH T FORWARD UNDER THE HEAD EXPENDITURE IN THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-03- 2009. THEREFORE, ACCORDING TO THE LD.REPRESENTATIV E, IT MAY NOT BE CORRECT TO SAY THAT THE ASSESSEE HAS NOT DISCLOSED THE CLOS ING STOCK OF BOUGHT OUT INGOTS TO THE EXTENT OF 2235 TONNES. ACCORDING TO THE LD.REPRESENTATIVE, THE BOUGHT OUT INGOTS WAS LYING IN THE ROLLING DIVISION . THEREFORE, IT WAS SEPARATELY DISCLOSED IN SCHEDULE II AND SCHEDULE D TO THE PROFIT & LOSS ACCOUNT. THIS FACT WAS NOT CONSIDERED BY THE ASSES SING OFFICER. HOWEVER, THE CIT(A), AFTER EXAMINING THE ENTIRE BALANCE-SHEE T CAME TO THE CONCLUSION THAT THE ASSESSEE HAS DISCLOSED THE ENTI RE BOUGHT OUT INGOTS OF 2235 TONNES IN THE PROFITS & LOSS ACCOUNT AND THE C LOSING STOCK OF THE RAW MATERIAL WAS REDUCED FROM THE MATERIAL CONSUMED AS DISCLOSED IN THE PROFIT 5 ITA NO.02/COCH/2013 & LOSS ACCOUNT. ACCORDING TO THE LD.REPRESENTATIVE, SINCE THE VALUE OF THE CLOSING STOCK WAS ALREADY REDUCED FROM THE COST OF CONSUMPTION IN THE PROFIT & LOSS ACCOUNT, IT WAS SHOWN DIRECTLY IN THE BALANCE-SHEET UNDER THE HEAD CURRENT ASSET. REFERRING TO THE CLARIFICATI ON SAID TO BE FILED BY THE STATUTORY AUDITORS, THE COPY OF WHICH IS AVAILABLE ON FILE, THE LD.REPRESENTATIVE SUBMITTED THAT THE STATUTORY AUDI TORS HAVE ALSO CLARIFIED AND CONFIRMED THAT THE VALUE OF BOUGHT OUT M.S. ING OTS TO THE EXTENT OF 2235 TONNES WAS INCLUDED IN THE INVENTORIES OF BOUG HT OUT M.S. INGOTS AND REROLLABLE SCRAP IN THE SCHEDULE D OF THE BALANCE -SHEET UNDER THE HEAD CURRENT ASSETS. THE STATUTORY AUDITORS ALSO CLAR IFIED THAT THE NOTES FORMING PART OF THE BALANCE-SHEET INDICATING THE CLOSING ST OCK OF 116 TONNES EXCLUDES 2235 TONNES OF BOUGHT OUT M.S. INGOTS LYIN G IN THE ROLLING DIVISION WHICH INDICATES THAT STOCK IN ROLLING DIVISION DOES NOT INCLUDE THE STOCK OF OWN PRODUCTION OF INGOTS WHICH IS SEPARATELY ACCOUN TED FOR. SINCE THE BOUGHT OUT M.S. INGOTS ARE SEPARATELY ACCOUNTED IN THE BOOKS OF ACCOUNT AND IT WAS BROUGHT IN THE PROFIT & LOSS ACCOUNT AS ALSO IN THE BALANCE-SHEET SEPARATELY, THE ASSESSING OFFICER COMMITTED AN ERRO R IN NOT CONSIDERING THE BOUGHT OUT M.S. INGOTS DISCLOSED IN THE BALANCE-SHE ET UNDER THE HEAD CURRENT ASSETS. THEREFORE, ACCORDING TO THE LD.R EPRESENTATIVE, THE CIT(A) HAS RIGHTLY DELETED THE ADDITION. 6 ITA NO.02/COCH/2013 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSE SSING OFFICER MADE ADDITION OF RS.5,28,80,427 ON THE GROUND THAT 2235 TONNES OF BOUGHT OUT M.S. INGOTS SHOWN IN THE BALANCE-SHEET WAS NOT SHOW N IN THE CLOSING STOCK. THE ASSESSEE DEMONSTRATED THAT IN THE SCHED ULE II TO PROFIT & LOSS ACCOUNT, THE CLOSING STOCK TO THE EXTENT OF RS.5,44 ,75,975 WAS REDUCED FROM THE RAW MATERIAL CONSUMED WHICH INCLUDES THE C OST OF 2235 BOUGHT OUT M.S. INGOTS TO THE EXTENT OF RS.5,28,80,427. T HIS WAS SHOWN IN THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2009 . THE STATUTORY AUDITORS CLARIFIED THAT BOUGHT OUT INGOTS LYING IN THE ROLLING DIVISION WAS EXCLUDED FROM THE M.S. INGOTS MANUFACTURED BY THE A SSESSEE SINCE BOTH ARE ACCOUNTED FOR SEPARATELY. THEREFORE, TO INDICA TE THAT 116 TONNES OF MANUFACTURED M.S. INGOTS DOES NOT INCLUDE 2235 TONN ES OF BOUGHT OUT INGOTS, A NOTE WAS MADE TO THE BALANCE-SHEET. AS C LARIFIED BY THE STATUTORY AUDITORS, THIS INDICATES THAT THE STOCK LYING IN TH E ROLLING DIVISION DOES NOT INCLUDE THE STOCK OF THE OWN PRODUCTION OF INGOTS. THE FACT REMAINS IS THAT STOCK LYING AS ON 31-03-2009 TO THE EXTENT OF RS.5, 44,75,975 WAS REDUCED FROM THE TOTAL CONSUMPTION OF RAW MATERIALS WHICH I NCLUDE THE CLOSING STOCK OF BOUGHT OUT M.S. INGOTS TO THE EXTENT OF RS.5,28, 80,427. THEREFORE, THIS TRIBUNAL; IS OF THE CONSIDERED OPINION THAT THE CIT (A) HAS RIGHTLY DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. ACCORD INGLY THE SAME IS CONFIRMED. 7 ITA NO.02/COCH/2013 7. NOW COMING TO THE APPEAL FILED BY THE ASSESSEE, THE FIRST GROUND OF APPEAL PERTAINS TO ADDITION OF RS. 83,742 TOWARDS I NTEREST. ACCORDING TO THE LD.REPRESENTATIVE FOR THE ASSESSEE, THE ASSESSE E RECEIVED INTEREST FROM FEDERAL BANK TO THE EXTENT OF RS.2,83,33,636. THE ASSESSEE HAS ALSO RECEIVED INTEREST FROM SPECIAL OFFICER KSEB TO THE EXTENT OF RS.3,88,179. BOTH THE AMOUNTS WERE DISCLOSED IN THE PROFIT & LOS S ACCOUNT. THEREFORE, ACCORDING TO THE LD.REPRESENTATIVE, THE ADDITION MA DE BY THE ASSESSING OFFICER TO THE EXTENT OF RS.83,742 IS UNWARRANTED. 8. ON THE CONTRARY, SMT. S VIJAYAPRABHA, THE LD.DR SUBMITTED THAT DURING THE YEAR CONSIDERATION THE ASSESSEE HAS RECE IVED INTEREST FROM FEDERAL BANK TO THE EXTENT OF RS. 2,84,17,378 AND F ROM SPECIAL OFFICER, KSEB. HOWEVER, THE ASSESSEE OFFERED THE INCOME ONL Y TO THE EXTENT OF RS.2,83,33,636. THEREFORE, THE DIFFERENCE OF RS.83 ,742 WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTED LY, THE ASSESSEE RECEIVED INTEREST FROM FEDERAL BANK TO THE EXTENT O F RS.2,83,33,636 AND ANOTHER AMOUNT OF RS.3,88,139 FROM KSEB. WHAT WAS DISCLOSED IN THE RETURN OF INCOME IS ONLY RS.2,83,33,636. THE ASSES SING OFFICER MADE ADDITION OF ONLY RS.83,742. AN AMOUNT OF RS.3,88,1 39 WAS NOT INCLUDED IN 8 ITA NO.02/COCH/2013 THE TOTAL INCOME. THEREFORE, THIS TRIBUNAL IS OF T HE CONSIDERED OPINION THAT THE ASSESSEE CANNOT HAVE ANY GRIEVANCE. ACCORDINGL Y, THE ORDER OF THE ASSESSING OFFICER IS CONFIRMED ON THIS ISSUE. HENC E, THIS GROUND OF THE ASSESSEE IS REJECTED. 10. THE NEXT GROUND OF APPEAL IS WITH REGARD TO NON DEDUCTION OF TDS. ACCORDING TO THE LD.REPRESENTATIVE, THE ASSESSEE HA S PURCHASED POSTAL STAMPS AND POSTAGE BROCHURES. HOWEVER, THE ASSESSI NG OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THESE ARE ALL ADVERTISEMENT EXPENSES AND TDS WAS NOT MADE. ACCORDING TO THE LD .REPRESENTATIVE, THE TOTAL EXPENDITURE INCURRED FOR STAMPS AND POSTAGE B ROCHURES IS RS.61,751. HOWEVER, THE CIT(A) FOUND THAT ONLY A SUM OF RS.21, 367 IS IN THE NATURE OF ADVERTISEMENT AND THE BALANCE AMOUNT OF RS.40,384 I S ACTUALLY EXPENSES OF POSTAGE CHARGES. THEREFORE, THE CIT(A) ALLOWED THE CLAIM OF THE ASSESSEE TO THE EXTENT OF RS.40,384. ACCORDING TO THE LD.REPRESENTATIVE, THE ENTIRE AMOUNT RELATES TO PURCHASE OF POSTAGE. THEREFORE, IT CANNOT BE TREATED AS ADVERTISEMENT EXPENSES. 11. WE HEARD SMT. S VIJAYAPRABHA, THE LD.DR ALSO. THE LD.DR SUBMITTED THAT THE ASESSEE HAS PAID AN AMOUNT OF RS .61,751 AS ADVERTISEMENT CHARGES WITHOUT DEDUCTING TAX. ACCOR DING TO THE LD.DR, THEREFORE, THE ASSESSING OFFICER DISALLOWED THE CLA IM OF THE ASSESSEE TO THE 9 ITA NO.02/COCH/2013 EXTENT OF RS. 61,751 U/S 40(A)(IA) OF THE ACT. THE CIT(A), AFTER VERIFYING THE MATERIAL AVAILABLE ON RECORD FOUND THAT ONLY AN AMO UNT OF RS.21,367 PERTAINS TO ADVERTISEMENT EXPENSES. HE, THEREFORE, ALLOWED THE CLAIM OF THE ASSESSEE TO THE EXENT OF RS.40,384. SINCE THE CIT(A) AFTER VERIFICATION ALLOWED THE CLAIM OF THE ASSESSEE, ACCORDING TO THE LD.DR, NO INTERFERENCE IS CALLED FOR. 12. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EIT HER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD.. THOUGH THE ASSESSEE CLAIMS THAT THE EXPENDITURE INCURRED IS ONLY FOR POSTAGE A ND BROCHURES, NO MATERIAL IS AVAILABLE ON RECORD TO SUGGEST THAT THE EXPENDITURE PERTAINS ONLY TO POSTAGE AND BROCHURES. THE CIT(A) ON VERIF ICATION FOUND THAT AN AMOUNT OF RS. 40,384 IS THE ACTUAL EXPENDITURE ON P OSTAGE AND BROCHURES AND ONLY AN AMOUNT OF RS.21,367 PERTAINS TO ADVERTI SEMENT EXPENDITURE. IN THE ABSENCE OF ANY MATERIAL TO THE CONTRARY, THI S TRIBUNAL IS OF THE CONSIDERED OPINION THAT THERE IS NO REASON TO INTER FERE WITH THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE ORDER OF THE CIT (A) ON THIS ISSUE IS CONFIRMED. 13. THE NEXT GROUND OF APPEAL IS WITH REGARD TO DIS ALLOWANCE OF TOOLS AND EQUIPMENTS TO THE EXTENT OF RS.45,25,376. ACCO RDING TO THE LD.REPRESENTATIVE FOR THE ASSESSEE, THE ASSESSEE CL AIMED REVENUE 10 ITA NO.02/COCH/2013 EXPENDITURE TO THE EXTENT OF RS.45,25,376 ON PURCHA SE OF TOOLS AND EQUIPMENTS. THE ASSESSING OFFICER, HOWEVER, DISALL OWED THE SAME ON THE GROUND THAT IT IS A CAPITAL EXPENDITURE. ACCORDING TO THE LD.REPRESENTATIVE, THE TOOLS WERE BOUGHT BEFORE 31-03-2004. DUE TO PA SSAGE OF TIME, THE TOOLS BOUGHT PRIOR TO 31-03-2004 WERE FOUND UNSERVI CEABLE. THEREFORE, IT WAS WRITTEN OFF. THE WRITTEN DOWN VALUE OF THE TOO LS AND EQUIPMENTS AS ON 01-04-2004 WAS RS.45,25,376. HENCE, IN THE COMPUTA TION OF INCOME, AN AMOUNT OF RS.89,09,999 WAS ADDED TO THE BOOK PROFIT AND THEN AN AMOUNT OF RS.45,25,376 WAS DEDUCTED FROM IT. ACCORDING TO THE LD.REPRESENTATIVE, FOR THE PURPOSE OF COMPUTING THE BOOK PROFIT, THE A SSESSEE IS ENTITLED TO ADD THE ENTIRE AMOUNT IN THE COMPUTATION AND NOT JU ST WRITTEN DOWN VALUE. ACCORDING TO THE LD.REPRESENTATIVE, EVEN IF THE CLA IM OF THE ASSESSEE COULD NOT BE ALLOWED AS REVENUE EXPENDITURE, THEN IT HAS TO BE TREATED AS CAPITAL EXPENDITURE AS CONTENDED BY THE REVENUE AND IN THAT CASE THE ASSESSEE IS ENTITLED FOR DEPRECIATION. ACCORDING TO THE LD.REP RESENTATIVE, THE ASSESSEE IS ENTITLED FOR DEPRECIATION @100%. 14. ON THE CONTRARY, SMT. S VIJAYAPRABHA, THE LD.DR SUBMITTED THAT THE ASSESSEE HAS DEBITED AN AMOUNT OF RS.89,09,999 TOWA RDS TOOLS AND EQUIPMENTS WRITTEN OFF AS PER THE COMPANIES ACT. THEREAFTER THE ASSESSEE ADDED AN AMOUNT OF RS.45,25,376. ACCORDIN G TO THE LD.DR, THE TOOLS AND EQUIPMENTS ARE CAPITAL ASSETS AND ONLY DE PRECIATION CAN BE 11 ITA NO.02/COCH/2013 CLAIMED ON THE CAPITAL ASSET U/S 32 OF THE ACT. TH EREFORE, THE CLAIM OF THE ASSESSEE WAS DISALLOWED. 15. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EIT HER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSE SSEE CLAIMED AN EXPENDITURE OF RS.45,25,376 AS REVENUE EXPENDITURE. ADMITTEDLY, THIS EXPENDITURE WAS INCURRED FOR PURCHASE OF TOOLS AND EQUIPMENTS. THE TOOLS AND EQUIPMENTS ARE CAPITAL ASSETS OF THE COMPANY. THEREFORE, THE EXPENDITURE INCURRED BY THE ASSESSEE CANNOT BE ALLO WED AS REVENUE EXPENDITURE U/S 37(1) OF THE ACT. HOWEVER, THE EXP ENDITURE HAS TO BE CAPITALIZED. ONCE IT IS CAPITALIZED, THE ASSESSEE IS ENTITLED FOR DEPRECIATION U/S 32 OF THE ACT. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSEE IS ENTITLED FOR DEPRECIATION AT THE RA TE APPLICABLE UNDER THE PROVISIONS OF THE INCOME-TAX ACT. SINCE THE ASSESS ING OFFICER HAS NOT CONSIDERED THE ENTITLEMENT OF THE ASSESSEE FOR DEPR ECIATION, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE ON THIS ISSUE A ND THE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASS ESSING OFFICER SHALL CONSIDER THE CLAIM OF THE ASSESSEE FOR DEPRECIATION AT THE RATE APPLICABLE UNDER THE INCOME-TAX ACT AFTER GIVING REASONABLE OP PORTUNITY TO THE ASSESSEE. WITH THE ABOVE OBSERVATION THIS ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. 12 ITA NO.02/COCH/2013 16. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED AND THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH SEPTEMBER, 2013. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 27 TH SEPTEMBER, 2013 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH