DCIT Corporate Circle 1, Coimbatore V. Chiranjeevi Wind Energy Limited, Coimbatore

ITA 2226/CHNY/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9046 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 24-04-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 12-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Depreciation; Additional depreciation
• Section: 143(3); 32(1)(iia)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A. NO. 2226/CHNY/2017 / ASSESSMENT YEAR :2012-13 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1, 63-A, RACE COURSE ROAD, COIMBATORE. VS. M/S. CHIRANJEEVI WIND ENERGY LTD., 45/3A, ARTS COLLEGE ROAD LANE, OPP: BALA LODGE, COIMBATORE 641 018. [PAN:AAACC8761H] ( APPELLANT ) ( RESPONDENT) / APPELLANT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL. CIT / RESPONDENT BY : SHRI R. VIJAYARAGHAVAN, ADVOCATE / DATE OF HEARING : 27.11.2018 /DATE OF PRONOUNCEMENT : 03.12.2018 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 1, COIMBATORE DATED 30.06.2017 RELEVANT TO THE ASSESSMENT YEAR 2012-13. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) HAS ERRED IN ALLOWING THE CLAIM OF DEPRECIATION FOR THE ASSESSMENT YEAR 2012-13. 2. THE ASSESSING OFFICER DETERMINED THE TOTAL LOSS OF THE ASSESSEE AT .10,25,94,240/- WHILE COMPLETING THE ASSESSMENT UNDER SECTION 143(3) OF I.T.A. NO. 2226/CHNY/17 2 THE INCOME TAX ACT, 1961 [ACT IN SHORT]. ON COMPUTING THE ABOVE LOSS, THE ASSESSING OFFICER DISALLOWED THE ADDITIONAL DEPRECIATION CLAIMED UNDER SECTION 32(1)(IIA) OF THE ACT TO THE TUNE OF .69,00,000/- ON THE WINDMILL PURCHASED BY THE ASSESSEE. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, FACTS OF THE CASE AS WELL AS FOLLOWING VARIOUS DECISIONS, THE LD. CIT(A) HAS ALLOWED THE APPEAL FILED BY THE ASSESSEE. 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. DR SUBMITTED THAT THE ELIGIBILITY OF ADDITIONAL DEPRECIATION ON WIND MILL IS NOT THE POINT AT ISSUE, BUT, APPLICABILITY OF PROVISIONS OF SECTION 32(1)(IIA) OF THE ACT IS THE POINT AT ISSUE AND THUS, PLEADED THAT THE ORDER OF THE LD. CIT(A) SHOULD BE REVERSED. 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER PASSED BY THE LD. CIT(A). 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF ADDITIONAL DEPRECIATION ON WIND MILL ON THE GROUND THAT THE AMENDED PROVISIONS OF SECTION 32(1)(IIA) OF THE ACT WOULD BE APPLICABLE FROM 01.04.2013 ONLY AND CONSEQUENTLY SUCH CLAIM I.T.A. NO. 2226/CHNY/17 3 MADE IN THE ASSESSMENT YEAR 2012-13 IS NOT AVAILABLE TO THE ASSESSEE. AS RIGHTLY CONTENDED BY THE LD. DR, WE FIND THAT THE ELIGIBILITY OF ADDITIONAL DEPRECIATION ON WIND MILL IS NOT THE ISSUE IN APPEAL. THE BUSINESS OF GENERATION, TRANSMISSION OR DISTRIBUTION OF POWER WAS BROUGHT WITHIN THE AMBIT OF SECTION 32(1)(IIA) OF THE ACT BY THE FINANCE ACT, 2012 FROM 01.04.2013, I.E., FROM THE ASSESSMENT YEAR 2013-14. SINCE THE CASE OF THE ASSESSEE IS FOR THE ASSESSMENT YEAR 2012-13, OBVIOUSLY, THE ASSESSEE IS NOT ELIGIBLE FOR THE BENEFIT OF ADDITIONAL DEPRECIATION DURING THE RELEVANT ASSESSMENT YEAR. SIMILAR FINDING WAS GIVEN IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2011-12 VIDE ORDER DATED 10.07.2017 IN I.T.A. NO. 2468/MDS/2016. THE CASE LAW RELIED ON BY THE LD. CIT(A) IN THE APPELLATE ORDER HAS NO APPLICATION TO THE FACTS OF THE CASE ON HAND. THUS, WE SET ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND RESTORE THAT OF THE ASSESSING OFFICER. ACCORDINGLY, THE GROUND RAISED BY THE REVENUE IS ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED ON THE 3 RD DECEMBER, 2018 AT CHENNAI. SD/ - SD/ - (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 03.12.2018 VM/- I.T.A. NO. 2226/CHNY/17 4 /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.