Dimple Vishal Agrawal, Vadodara V. The ITO, Ward-1(2)(4), Vadodara

ITA 251/AHD/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1624 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 16-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 143(2)

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH SMC BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA NO. 251/AHD/2020 / ASSESSMENT YEAR: 2013-14 DIMPLE VISHAL AGRAWAL C/O. MQADHU PRINTING HUB A-35, SAMRAJYA MUJMAHUDA ROAD AKOTA, VADODARA. PAN : ABIPA 4708 L VS ITO, WARD-1(2)(4) VADODARA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI PARIN SHAH, AR REVENUE BY : SHRI DILEEP KUMAR, SR.DR / DATE OF HEARING : 23/10/2020 /DATE OF PRONOUNCEMENT : 9/ 12/2020 O R D E R ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF THE LD.CIT(A)-5, VADODARA DATED 29.1.2020 PASSED FOR TH E ASSTT.YEAR 2013-14. 2. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T(A) HAS ERRED IN CONFIRMING THE ALLOWANCE DEPRECIATION AT THE RATE O F 15% AS AGAINST 60% CLAIMED BY THE ASSESSEE ON XEROX MACHINE WV-5745. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED HER RETURN OF INCOME ON 14.9.2013 DECLARING TOTAL INCOME AT RS.8, 80,560/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT A ND NOTICE UNDER SECTION 143(2) WAS ISSUED AND SERVED UPON THE ASSES SEE. ON SCRUTINY OF ITA NO.251/AHD/2020 - 2 THE ACCOUNTS, IT REVEALED TO THE AO THAT THE ASSESS EE HAS CLAIMED DEPRECIATION AT THE RATE OF 60% WHEREAS IN HIS OPIN ION DEPRECIATION AT THE RATE OF 15% IS AVAILABLE ON THESE PRINTERS, XER OX-MACHINE ETC. THE DETAILS OF ASSET, RATE OF DEPRECIATION CLAIMED, AND ALLOWED BY THE AO HAS BEEN NOTICED BY THE CIT(A) ON PAGE NO.2 OF THE IMPU GNED ORDER. SUCH DETAILS READ AS UNDER: DEPRECIATION OF THE ASSET DEPRECIATION CLAIMED @ OF 60% ALLOWABLE DEPRECIATION @ OF 15% DIFFERENCE AMOUNT IN RS. B/W LASER PLOTTER 20,603 5,150 15,453 DIGITAL VIDEO RECORDER 7,428 1,857 5,571 OCE PLPTWAVE 3,78,000 94,500 2,83,500 XEROX MAHINES 3,92,030 98,007 2,94,023 XEROX WV_5745 1,89,000 47,250 1,41,750 TOTAL 7,40,297 4. IN THIS WAY, THE LD.AO HAS DISALLOWED A SUM OF R S.7,40,297/-. HOWEVER, ON APPEAL, THE LD.CIT(A) CONFIRMED THE DIS ALLOWANCE ON XEROX MACHINE WV-5745 I.E. LAST ITEM IN THE TABLE. THE A SSESSEE HAS CLAIMED DEPRECIATION AT RS.1,89,000/-. THE LD.CIT(A) CONCU RRED WITH THE AO ON THIS ITEM OF ASSET FOR THE PURPOSE OF ADMISSIBILITY OF DEPRECIATION. THIS APPEAL WAS HEARD IN PHYSICAL COURT ON 23.10.2020. THE LD.COUNSEL FOR THE ASSESSEE WHILE IMPUGNING THE DISALLOWANCE TOOK ME T HROUGH INVOICE OF THE MACHINES VIDE WHICH IT HAS PURCHASED. HE THERE AFTER DREW MY ITA NO.251/AHD/2020 - 3 ATTENTION TOWARDS SPECIFICATION AND THE NATURE OF T HE ASSET. HE POINTED OUT THAT IT IS NOT XEROX MACHINE SIMPLICITOR , RATHER IT IS A MULTI-FUNCTIONAL PRINTER WHICH CAN DO PHOTO-STATE WORK AS WELL AS PR INTING IF ATTACHES WITH PRINTER. THEREFORE, THE LD.CIT(A) HAS ERRED IN TAKING COGNIZANCE OF THE NATURE OF THIS MACHINERY. HE FURTHER RELIED UP ON THE DECISION OF ITAT, AHMEDABAD BENCH IN THE CASE OF SMT.MAMTA NIRA JKUMAR AGRAWAL VS. ITO, ITA NO.811 & 376/AHD/2017. IN THI S CASE ALSO, THE ASSESSEE HAS GIVEN NOMENCLATURE OF ITS PRINTER AS C OPIER. THE TRIBUNAL ALLOWED DEPRECIATION AT THE RATE OF 60% BY OBSERVIN G THAT NOMENCLATURE OF THE MACHINERY IN THE BOOKS CANNOT BE A DECISIVE FACTOR, RATHER IT IS THE NATURE OF THE ASSET WHICH IS TO BE DETERMINED, AND THEREAFTER RATE OF DEPRECIATION BE DECIDED. ON THE OTHER HAND, THE LD .DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 5. ON DUE CONSIDERATION OF THE ABOVE AND CIRCUMSTAN CES, I AM OF THE VIEW THAT THE ASSESSEE IS ENTITLED FOR DEPRECIATION AT THE RATE OF 60% OF THIS ALLEGED XEROX MACHINE WV-5745. THE SIMPLE REA SON IS THAT THE LD.CI(A) FAILED TO COMPREHEND TRUE NATURE OF THIS A SSET. IT HAS BEEN TREATED AS PHOTO-STATE MACHINE WITHOUT GOING THROUG H LITERATURE OF THE MACHINE SUPPLIED BY THE MANUFACTURER. ACCORDING TO THE MANUAL, IT IS MULTI-FUNCTIONAL PRINTER. ITS FEATURE TO MAKE PHOT O-STATE OF A PAPER IS AN ADDED ACTIVITY. IT IS ALSO PERTINENT TO OBSERVE TH AT ADMISSIBILITY OF DEPRECIATION AT THE RATE OF 60% IS NOT DISPUTED BY THE LD.CIT(A). THE LD.CIT(A) HAS GRANTED THIS RATE OF DEPRECIATION ON ALL OTHER ASSETS, WHICH ARE TREATED AS PERIPHERAL OF THE COMPUTER. TO MY M IND, THIS ASSET CANNOT BE EXCLUDED FOR THE REASONS ASSIGNED BY LD.CIT(A). IT IS TO BE TREATED AS AN INTEGRAL PART OF THE COMPUTER SYSTEM WHICH HELPS PRINTING FROM THE ITA NO.251/AHD/2020 - 4 COMPUTER CONNECTED WITH IT. THEREFORE, I ALLOW THI S APPEAL, AND DELETE DISALLOWANCE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON 9 TH DECEMBER, 2020. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 9/12/2020