ACIT, UDAIPUR V. M/s. Orient Glazes Limited, UDAIPUR

ITA 234/JODH/2014

• Counselvise Citation: 23423314 RSA 2014
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-08-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 11-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HAS FILED THIS APPEAL; ALSO ON CIVIL; O LD WIND MILLS; ELECTRICAL WORKS
• Assessee Lawyers: IN PRE
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA , JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 234 / JU/ 20 1 4 ASSESSMENT YEAR: 200 9 - 1 0 THE A. C.I.T VS. M/S ORIENT GLAZE LTD CIRCLE - 2 G - 1 - 90 - 93, UDYOG VIHAR UDAIPUR SUKHER, UDAIPUR PAN NO. AAACO 6932 G (APPELLANT) (RESPONDENT) A SSESSEE B Y : SHRI R.K. POKHARANA DEPARTMENT B Y : SHRI JAI SINGH , DR DATE OF H EARING : 27 . 0 8 .201 4 DATE OF PRONOU NCEMENT : 02 . 0 9 . 201 4 ORDER PER HARI OM MARATHA , J .M. TH IS APPEAL BY THE REVENUE IS DIRECTED A GAINST THE ORDER OF THE CIT (A) , UDAIPUR DATED 30 . 0 1 .20 1 4 PERTAINING TO A.Y 20 09 - 10 . 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE - COMPA NY DERIVED ITS INCOME FROM MANUFACTURING OF CERAMIC GLAZE FRIT. THE ASSESSEE HAS GOT INSTALLED A SECOND WIND MILL THROUGH M/S SUZLON INFRASTRUCTURE LTD. THE ASSESSEE HAS CLAIMED DEPRECIATION @ 80% ON THIS WIND MILL INCLUDING ON CIVIL AND ELECTRICAL WORKS AND TOWER/TURBINE. THE A.O DECLINED HIGHER DEPRECIATION AND DISCLOSED TOTAL DEPRECIATION OF RS. 55,83,553/ - [I.E. RS. 29,05,052/ - ON NEW WIND MILL AND RS. 26,78,501/ - ON OLD WINDMILL]. THE LD. CIT(A) HAS ALLOWED THE HIGHER DEPRECIATION ON BOTH NEW AND O LD WIND MILLS AND ALSO ON CIVIL AND ELECTRICAL WORK. NOW, THE REVENUE IS AGGRIEVED AND HAS FILED THIS APPEAL BY RAISING THE FOLLOWING GROUNDS: ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF THE CASE, THE ID. CIT(A) HAS ERRED IN : 1. DELETING THE TOT AL DISALLOWANCE OF HIGHER DEPRECIATION OF RS. 55,83,553/ - [I.E. RS. 29,05,052/ - ON NEW WIND MILL AND RS. 26,78,501/ - ON OLD WIND MILL] CLAIMED ON VARIOUS ITEMS WHICH ARE NOT AT ALL PARTS OF THE WIND MILL, IGNORING THE FACT THAT HIGHER RATE OF DEPRECIATION IS AVAILABLE TO RENEWABLE ENERGY DEVICES BEING WIND MILL AS ENVISAGED IN ITEM NO. (XIII) OF S. 3 NO. 3 OF NEW APPENDIX 1 [I.E. DEPRECIATION TABLE) AND NOT TO THE EXTRA OR ANCILLARY ITEMS 2. IGNORING THE FACT THAT FOUNDATION WORK AND TRANSFORMER PLINTH IS BASICALLY CIVIL WORK AND IS NOT AT ALL PART OF WIND MILL AND THUS ELIGIBLE FOR DEPRECIATION @ 10% INSTEAD OF 80% 3. IGNORING THE FACT PURCHASE AND INSTALLATION OF ELECTRICAL ITEMS AND ELECTRIC LINES ARE NOT AT ALL PART OF WIND MILL AND IS THUS ELIGIBLE FOR DEPRECIATION @ 15% INSTEAD OF 80% . 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE RELEVANT MATERIAL ON RECORD. WE HAVE FOUND THAT THE LD. CIT(A) HAS CORRECTLY ALLOWED HIGHER DEPRECIATION @ 80% ON WIND MILLS AND CIVIL/ELECTRICA L WORKS. THIS ISSUE STAND COVERED BY THE DECISION OF THIS VERY BENCH INCLUDING IN THIS VERY ASSESSEE CASE FOR A.Y. 2008 - 09 WHERE ITAT, JODHPUR BENCH VIDE ORDER DATED 17.12.2012 IN ITA NO. 194/JU/2012 HAS ALLOWED HIGHER DEPRECIATION. THE LD. CIT(A) HAS FO LLOWED THE ABOVE TRIBUNAL ORDER IN ALLOWING THE CLAIMED DEPRECIATION. THEREFORE, WE DO NOT FIND ANY MERIT IN THE GROUND S OF APPEAL RAISED BY THE REVENUE AND WE DISMISS THE SAME. 4 4 . IN THE RESU LT, THE APPEAL OF THE REVENUE IN ITA NO. 234 /JU/2014 STANDS DISMISSED. ORDER PRON OUNCED IN THE COURT ON 02 ND SEPTEMBER , 2014. SD/ - SD/ - (N.K.SAINI) [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEM B ER DATED : 02 ND SEPTEMBER , 201 4 VL/ - COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT BY ORDER 4. THE CIT(A) 5. THE DR SENIOR PRIVATE SECRETARY ITAT, JODHPUR