GODFREY PHILIPS INDIA LTD, MUMBAI V. ADDL CIT 8(1), MUMBAI

ITA 2003/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84519 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: G
• Next Hearing Date: 15-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 26-03-2012
• Court: TRIBUNAL
• Assessee Lawyers: IN CIRCUMSTANCES OF CA SE; SUPPLY DEV ICE; NOT AS CLAIMED
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.2003/MUM/2012 ASSESSMENT YEAR: -2009-10 GODFREY PHILLIPS INDIA LTD. SAHARA ROAD, CHAKALA, ANDHERI (E) MUMBAI 400 099. VS.` ADDL. CIT, 8(1) MUMBAI. PAN:- AABCG4768K APPELLANT RESPONDENT ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 30.01.2012 OF CIT(A) FOR A.Y. 2009-10. THE ASSESSEE HAS RAISED FO LLOWING GROUNDS IN THIS APPEAL:- GROUND I: DISALLOWANCE OF DEPRECIATION ON UPS AMOU NTING RS. 24,309/- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 16, MUMBAI ( 'THE CIT (A)') ERRED IN UPHOLDING THE ACTION OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE 8( I ), MUMBAI ('A.A.') IN DISALLOWING 80% DEPRECIATION ON THE UNINTERRUPTED POWER SUPPLY ('UPS') ON THE ALLEGED GROUND THAT, THE UPS IS NOT AN ENERGY SAVING DEVICE BUT INSTEAD AN ENERGY STORAGE AND SUPPLY DEV ICE AND THEREFORE THE CORRECT RATE OF DEPRECIATION IS 15% (AND NOT 80% AS CLAIMED BY THE APPELLANT). GROUND II: DISALLOWANCE OF LEAVE ENCASHMENT AMOUNTI NG RS. 46,28,000/- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT (A) ERRED IN UPHOLDING THE ACTION OF THE AO IN DISALLOWING AN AMOUNT OF RS. 46,28,000/- ON ADHOC BASIS IN RESPECT OF LEAVE ENCASHMENT EXPENSES CLAIMED BY THE APPELLANT ON ASSESSEE SHRI RONAK G. DOSHI REVENUE BY SHRI VIVEK BATRA DATE OF HEARING 15.12.2014 DATE OF PRONOUNCEMENT 15.12.2014 GODFREY PHILLIPS INDIA LTD 2 | P A G E ACTUAL BASIS ON THE ALLEGED GROUND THAT THE SAID EX PENSES WOULD HAVE BEEN CLAIMED IN THE EARLIER YEARS ON THE BASIS OF ACTUAR IAL VALUATION AND THIS AMOUNTS TO DOUBLE DEDUCTION. 2. GROUND NO. 1 IS REGARDING DISALLOWANCE OF DEPRECI ATION ON UPS. 3. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND C ONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET, WE NOTE THAT THI S ISSUE HAS BEEN CONSIDERED BY THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2008-09 VI DE ORDER DATED 19-6-2013 IN ITA NO. 415/MUM/2012 IN PARA 2 AND 3 AS UNDER:- 2. GROUND NO.1 IN APPEAL OF THE ASSESSEE IS AGAINS T CONFIRMING THE ACTION OF THE AO IN DISALLOWING 80% DEPRECIATION ON THE UNINTERRUPTED P OWER SUPPLY (UPS), WHICH IS EQUIVALENT TO RS.1,40,535/-. 3. THIS ISSUE IS COVERED BY THE DECISION OF THE TRI BUNAL IN ASSESSEES OWN CASE FROM ASSESSMENT YEAR 2002-03 TO ASSESSMENT YEAR 2007-08. COPIES OF THE ORDER OF THE TRIBUNAL ARE PLACED ON RECORD. THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL FOR ASSESSMENT YEAR ON SIMILAR ISSUES, WE ALLOW THE CLA IM OF THE ASSESSEE IN THIS YEAR ALSO AS THE FACTS ARE SIMILAR. 4. THUS IT IS CLEAR THAT THIS ISSUE HAS BEEN CONSI STENTLY DECIDED BY THIS TRIBUNAL IN FAVOUR OF THE ASSESSEE. THEREFORE, FOLLOWING THE EA RLIER ORDERS OF THIS TRIBUNAL, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AND AGA INST THE REVENUE. 5. GROUND NO. 2 IS REGARDING DISALLOWANCE OF LEAVE E NCASHMENT. 6. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND C ONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET, WE NOTE THAT THI S ISSUE HAS BEEN CONSIDERED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2003-04 TO 2008-09. FOR A.Y. 2008-09, THE TRIBUNAL HAS DECIDED THIS ISSUE IN PARA 4 AND 5 AS UNDER:- 4. REMAINING ISSUE IS IN RESPECT TO DISALLOWANCE O F EXPENDITURE INCURRED ON LEAVE ENCASHMENT. 5. THIS ISSUE HAS BEEN SET ASIDE TO THE FILE OF THE AO FOR EARLIER YEAR I.E. FOR ASSESSMENT YEAR 2003-04 TO ASSESSMENT YEAR 2007-08. ON THE SAM E REASONING, THIS ISSUE IS ALSO SET GODFREY PHILLIPS INDIA LTD 3 | P A G E ASIDE FOR THE YEAR UNDER CONSIDERATION TO THE FILE OF THE AO TO PASS A FRESH ORDER IN THE LIGHT OF THE DIRECTION OF THE TRIBUNAL GIVEN IN EAR LIER YEAR. WE ORDER ACCORDINGLY. 7. FOLLOWING THE CONSISTENT VIEW TAKEN BY THE TRIBU NAL IN ASSESSEES OWN CASE, WE SET ASIDE THIS ISSUE TO THE RECORD OF ASSESSING OFFICER TO DECIDE AFRESH IN TERMS OF EARLIER DIRECTIONS. 8. IN THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 15 TH DAY OF DECEMBER 2014. SD/- SD/- ( D. KARUNAKARA RAO ) (VIJAY PAL RAO) (ACCOUNTANT MEMBER/ YS[KK LNL; YS[KK LNL; YS[KK LNL; YS[KK LNL; ) (JUDICIAL MEMBER/ U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; ) MUMBAI DATED 15-12-2014 SKS SR. P.S, COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI S.NO. DETAILS DATE INITIALS DESIGNATION