M/s. Omam Consultants Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 2721/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65239 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 06-08-2012
• Assessment Year: 2009-2010
• Appeal Filed On: 04-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: GAURAV RAKHEJA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `E : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.2721/DEL./2012 (ASSESSMENT YEAR : 2009-10) M/S OMAM CONSULTANTS PVT. LTD., VS. ACIT, CIRCLE 13(1), 137, SAIDULAJAB, M.B. ROAD, NEW DELHI. MAHRAULI, (PAN/GIR NO.AAAC0200H) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GAURAV RAKHEJA, CA REVENUE BY : SHRI R.S. NEGI, SR.DR ORDER PER U.B.S. BEDI, J.M. THIS APPEAL OF THE ASSESSMENT ORDER IS DIRECTED AG AINST THE ORDER OF THE CIT (A)- XVI, NEW DELHI, DATED 10.12.2011, RELEVANT TO ASSES SMENT YEAR 2009-10, WHEREBY CONFIRMATION OF ADDITION OF DISALLOWANCE OF RS.50,3 13/-, BY TREATING THE DEPRECIATION ON UPS AS APPLICABLE TO PLANT AND MACHINERY INSTEAD OF ALLOWING DEPRECIATION AS APPLICABLE TO THE COMPUTERS, HAS BEEN CHALLENGED. 2. AT THE VERY OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE RAISED IN THIS APPEAL IS SQUARELY COVERED IN FAVOUR OF THE AS SESSEE BY THE DECISION OF THIS BENCH IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2008-09 IN I.T.A. NO.3757/DEL./2011 DATED 14.10.2011 AND BY PLACING COPY OF THE ORDER OF E BENCH OF THE TRIBUNAL FOR ASSESSMENT YEAR 2008-09, IT WAS PLEADED FOR DELETING THE IMPUG NED ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A). 3. LD.DR RELIED UPON THE ORDERS OF AUTHORITIES BELO W AND PLEADED FOR ITS CONFIRMATION. I.T.A. NO.2721/DEL./2012 (A.Y. : 2009-10) 2 4. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE MATERIAL ON RECORD, WE FIND THAT ASSESSING OFFICER ALLOWED DEPRECIATION ON UPS @ 15% ADMISSIBLE TO PLANT AND MACHINERY AGAINST RATE OF 60% CLAIMED ON COMPUTERS AND ITS PARAPHERNALIA AND IT IS THE MAIN CONTENTION OF THE ASSESSEE THOUGH THE UPS COME S WITHIN THE DEFINITION OF COMPUTERS AND ITS PARAPHERNALIA, THEREFORE, DISALLOWANCE MADE BY THE ASSESSING OFFICER BY TREATING THE DEPRECIATION AT 15% IS UNWARRANTED AND UNCALLED FOR AND TO SUPPORT THIS PLEA, ASSESSEE HAS FILED COPY OF THE TRIBUNAL ORDER IN ITS OWN CAS E FOR THE ASSESSMENT YEAR 2008-09, WHEREIN PLEA OF THE ASSESSEE HAS BEEN ACCEPTED AND RELEVANT PARAS.3 & 4 OF THE TRIBUNAL ORDERS, IS REPRODUCED AS UNDER: 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE TIM E OF HEARING POINTED OUT THAT THE ISSUE IN DISPUTE IS SQUARELY COVERED IN FAVOUR OF T HE ASSESSEE BY THE DECISION OF THE HON'BLE DELHI HIGH COURT RENDERED IN THE CA SE OF CIT VS. ORIENT CERAMICS & INDUSTRIES IN ITA NO.65 OF 2011. HE PLACED ON RECORD COPY OF THE DECISION DELIVERED ON 20.1.2011. THE OBSERVATIONS MADE BY T HE HON'BLE HIGH COURT IN PARAGRAPH 13 READ AS UNDER: 13. THE THIRD ISSUE PERTAINING TO DEPRECIATION O N UPS ARISES ONLY IN THE ASSESSMENT YEAR 2005-06. THE ASSESSEE HAD CLAIMED D EPRECIATION ON UPS @ 60% WHEREAS THE A.O. HAD ALLOWED IT @ 25% AND ON THIS BASIS, DISALLOWANCE OF RS.1,470 WAS MADE. THE ISSUE NOW STANDS COVERED BY THE JUDGMENT OF THIS COURT IN THE CASE OF C IT VS. BSES YAMUNA POWERS LTD. ( IN ITA NO.1267 DECIDED ON 31. 08.2010) WHEREIN IT WAS HELD THAT THE DEPRECIATION @ 60% ON SUCH ITEMS SH ALL BE ALLOWED. 4. ON DUE CONSIDERATION OF THE ISSUE AND THE JUDG MENT OF HON'BLE DELHI HIGH COURT, WE ARE OF THE VIEW THAT DEPRECIATION ON UPS WOULD BE ADMISSIBLE @ 60%. WE ALLOW THE APPEAL OF THE ASSESSEE AND DIRECT THE ASSESSING OFFICER TO GRANT DEPRECIATION ON UPS @ 60%. 5. SINCE LD.DR COULD NOT BE ABLE TO PLACE ANY CONTR ARY MATERIAL OR ANY HIGHER COURTS ORDER ON THIS ISSUE AND ISSUE IS COVERED IN FAVOUR OF ASSESSEE, THEREFORE, FOLLOWING THE EARLIER DECISION OF THIS BENCH CITED SUPRA, WE DIRECT TO DELETE THE IMPUGNED ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY LD.C IT(A). I.T.A. NO.2721/DEL./2012 (A.Y. : 2009-10) 3 6. AS A RESULT, THE APPEAL FILED BY THE ASSESSEE GETS ACCEPTED. ORDER PRONOUNCED IN OPEN COURT ON 09.08.2012 SD/- SD/- (B.C. MEENA) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : AUG. 09, 2012 SKB COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XVI, NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR, ITAT