ACIT, Coimbatore V. Roots Industries Limited, Coimbatore

ITA 2467/CHNY/2014

• Counselvise Citation: 246721714 RSA 2014
• Duration Of Justice: 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 06-07-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 30-09-2014
• Court: TRIBUNAL
• Department Lawyers: MR B NISCHAL JCITD R
• Assessee Lawyers: S SRIDHAR
• Keywords: Depreciation
• Section: 147

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2467 /MDS./2014 ( !' #' / ASSESSMENT YEAR :2005-06) THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-IV(2), NO.63,RACE COURSE ROAD, COIMBATORE 641 018. VS. M/S.ROOTS INDUSTRIES LIMITED ,R K G INDUSTRIAL ESTAE,GANAPATHY, COIMBATORE 641 006. PAN AABCR 0314 E ( / APPELLANT ) ( / RESPONDENT ) $% & ' / APPELLANT BY : MR. MR.B.NISCHAL, JCIT,D.R ()$% & ' / RESPONDENT BY : MR.S.SRIDHAR,ADVOCATE * + & ,- / DATE OF HEARING : 06. 07.2015 .# & ,- /DATE OF PRONOUNCEMENT : 10.07.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE, AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-I, COIMBA TORE DATED ITA NO.2467 /MDS/2014 2 18.07.2014 IN ITA NO.243/13-14 PASSED UNDER SEC.14 3(3) READ WITH SECTION 147 & SEC.250 OF THE ACT. 2. THE REVENUE HAS RAISED FIVE ELABORATE GROUNDS I N ITS APPEAL; HOWEVER THE CRUX OF THE ISSUE IS THAT THE REVENUE I S AGGRIEVED BY THE ORDER OF THE LD. CIT (A), WHO HAD ALLOWED HIGHER RA TE OF DEPRECIATION FOR THE WINDMILL AT 80% OF THE WRITTEN DOWN VALUE B Y FOLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE M/S.K.K.S.K.LEATH ER PRODUCTS LTD. (2010) REPORTED IN 126 ITD 215 AS AGAINST THE DEPRE CIATION ALLOWED BY THE ASSESSING OFFICER ON STRAIGHT LINE METHOD AT 7.69%. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF AUTOMOB ILE HORNS, FILED ITS RETURN OF INCOME. SUBSEQUENTLY, THE CASE WAS SE LECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT VIDE ORDER DATED 04.03.2013 WHEREIN THE LD. ASSESSING OFFICER HAD DISALLOWED THE CLAIM OF DEPRECIATION @ 80% BY THE ASSESSEE AGA INST THE WINDMILL SINCE THE ASSESSEE HAD NOT COMPLIED WITH S ECOND PROVISO TO RULE 5(1A) OF THE INCOME TAX RULES,1962 BY EXERCISI NG THE OPTION FOR CLAIMING HIGHER DEPRECIATION BEFORE THE DUE DATE OF FURNISHING THE ITA NO.2467 /MDS/2014 3 RETURN OF INCOME. HOWEVER, ON APPEAL THE LD. CIT ( A) FOLLOWING THE ORDER OF THE CHENNAI BENCH TRIBUNAL IN THE CASE M/S .K.K.S.K.LEATHER PRODUCTS LTD. (SUPRA) HELD THE ISSUE IN FAVOUR OF T HE ASSESSEE BECAUSE IN THE AFORESAID CASE IT WAS HELD THAT WHEN THERE IS NO SPECIFIC FORM OR METHOD IS PRESCRIBED FOR EXERCISIN G THE SAID OPTION THEN THE CLAIM MADE IN THE RETURN OF INCOME AS WELL AS REFLECTED IN THE BOOKS OF ACCOUNTS AND AUDIT REPORT FILED ALONG WITH THE RETURN OF INCOME IS MORE THAN THE EXERCISE OF THE OPTION AS R EQUIRED UNDER THE SECOND PROVISO TO RULE-5(1A). AGGRIEVED BY THE ORDE R OF THE LD. CIT (A) THE REVENUE IS NOW IN APPEAL BEFORE US. 4. AT THE OUTSET, WE FIND THAT THE LD. CIT (A) HAD RIGHTLY DECIDED THE ISSUE BY FOLLOWING THE DECISION OF THE CHENNAI BENCH OF THE TRIBUNAL BECAUSE IN THE CASE OF THE ASSESSEE THE CL AIM WAS MADE IN THE RETURN OF INCOME AS WELL AS REFLECTED IN THE AU DIT REPORT FILED ALONG WITH THE RETURN OF INCOME, THEREFORE IT WOULD AMOUN T TO EXERCISE OF THE OPTION AS REQUIRED UNDER SECOND PROVISO TO RULE -5( 1A) AND ACCORDINGLY DEPRECIATION @ 80% ON THE WINDMILL OF T HE ASSESSEE HAS TO BE ALLOWED. IN THESE CIRCUMSTANCES WE DO NOT FIN D ANY REASON TO ITA NO.2467 /MDS/2014 4 INTERFERE WITH THE ORDER OF THE LD. CIT (A). ACCOR DINGLY, WE HEREBY CONFIRMED THE ORDER OF THE LD. CIT (A). 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED ON 10 TH JULY, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 10 TH JULY, 2015. K S SUNDARAM. & (,/0 1 0#, /COPY TO: 1. $% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, ( ) /CIT(A) 4. * 2, /CIT 5. 05 (,6! /DR 6. 7' 8+ /GF