The DCIT, Circle-5, Ahmedabad V. M/s. Raajratna Metal Industries Ltd., Ahmedabad

ITA 2511/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6724 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-04-2011
• Assessment Year: 2008-2009
• Appeal Filed On: 12-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA SRDR
• Assessee Lawyers: P D SHAH
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI T.K. SHARMA, JUDICIAL MEMBER AND SHRI A.K.GARODIA, ACCOUNTANT MEMBER ITA NO.2511/AHD/2010 ASSESSMENT YEAR:2008-09 DATE OF HEARING:29.4.11 DRAFTED:.29.4.11 DY. CIT, CIRCLE-5, AHMEDABAD, 2 ND FLOOR, C.U. SHAH CHAMBERS, ASHRAM ROAD, AHMEDABAD-380 009 V/S. M/S. RAAJRATNA METAL INDUSTRIES LTD., 909, SAKAR-III, NR. INCOME- TAX CIRCLE, ASHRAM ROAD, AHMEDABAD PAN NO.AAACR9980M (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI R.K. DHANESTA, SR-DR RESPONDENT BY:- SHRI P.D. SHAH, AR O R D E R PER T.K. SHARMA, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DA TED 14-06-2010 OF COMMISSIONER OF INCOME(APPEALS)-XI, AHMEDABAD DELET ING THE ADDITION OF RS.14,38,722/- MADE ON ACCOUNT OF EXCESS CLAIM OF D EPRECIATION FOR ASSESSMENT YEAR 2008-09. 2. AT THE OUTSET SHRI P.D. SHAH APPEARED ON BEHALF OF ASSESSEE POINTED OUT THAT CONTROVERSY INVOLVED IN THIS APPEAL IS SQUARELY COV ERED BY THE DECISION OF ITAT B BENCH OF AHMEDABAD IN ITA NO.2099/AHD/2010 FOR ASSESSMENT YEAR 1996-97 VIDE ORDER DATED15-04-2011. ON THE OTHER HAND, SHRI R.K. DHANESTA, SR-DR APPEARED FOR REVENUE COULD NOT POINT OUT THAT ITAT B BENCH IN THE ORDER CITED BY LD. COUNSEL OF ASSESSEE RESTORED THE ISSUE REGARDING AL LOWANCE OF DEPRECIATION TO THE FILE OF LD. CIT(A) FOR FRESH ADJUDICATION. IN VIEW OF THE OPENING WDV IS YET TO WORKED OUT. ITA 2511/AHD/2010 A.Y. 2008-09 DCIT CIR-5 ABD V. M/S. RAAJRATNA METAL INDS. LTD. PAGE 2 3. WE HAVE CAREFULLY GONE THROUGH THE ORDER OF AUTH ORITIES BELOW. IT IS PERTINENT TO NOTE IN THE IMPUGNED ORDER OF LD. CIT(A) HAS NOT DELETED THE ADDITION OF RS.14,38,722/-. AS A MATTER OF FACT, LD. CIT(A) HAS DIRECTED THE ASSESSING OFFICER TO ALLOW DEPRECIATION IN CONSONANCE WITH THE ORDER GIV ING EFFECT TO THE APPELLATE ORDER IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR I.E. ASSE SSMENT YEAR 2007-08. THE ITAT IN ORDER DATED 15-04-2011 IN ITA NO.792/AHD/20 09 IN ASSESSEES OWN CASE (SUPRA) FOR ASSESSMENT YEAR 1997-98 RELIED BY LD. C OUNSEL FOR THE ASSESSEE, IT WAS HELD THAT AS PER PROVISION CONTENTS IN SECTION-32 D EPRECIATION IS REQUIRED TO BE COMPUTED ON OPENING WDV WHICH IS CLOSING WDV OF IMM EDIATELY PRECEDING ASSESSMENT YEAR. 4. IN VIEW OF THIS THE ASSESSING OFFICER IS REQUIRE TO ALLOW RE-WORKED THE DEPRECIATION ON OPENING WDV AFTER GIVING APPEAL EFF ECT TO THE ORDER OF APPELLATE AUTHORITIES IN EARLIER ASSESSMENT YEARS. WE THEREFO RE DO NOT FIND ANY INFIRMITY IN THE DIRECTION GIVEN BY LD. CIT(A) IN THE IMPUGNED ORDER . HENCE, WE DECLINE TO INTERFERE. 5. IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 29/04/2011 SD/- SD/- (A.K.GARODIA) (T.K. SHAR MA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, DATED : 29/04/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-XI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD