SDS Ramcides Crop Science Pvt. Ltd., CHENNAI V. DCIT Corporate Circle 6(1), CHENNAI

ITA 2774/CHNY/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7185 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 25-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI Įी महावीर ͧसंह, उपाÚय¢ एवं Įी मनोज क ु मार अĒवाल, लेखा सदèय के सम¢ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 2774/Chny/2018 (िनधाŊरण वषŊ / Assessment Year: 2014-15) SDS Ramcides Crop Science Pvt. Ltd., 7 th Floor, VBC Solitaire, No. 47 & 49, Bazullah Road, T. Nagar, Chennai – 600 017. बनाम/ Vs. Deputy Commissioner of Income Tax, Corporate Circle -6(1), Chennai. ̾थायी लेखा सं./जीआइ आर सं./PAN/GIR No. AAACS-3784-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎ की ओरसे/ Appellant by : Shri H. Yeshwanth Kumar, CA ŮȑथŎ की ओरसे/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of Hearing : 07.06.2022 घोषणा की तारीख / Date of Pronouncement : 15.06.2022 आदेश / O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by assessee is arising out of the order of Commissioner of Income Tax (Appeals)-15, Chennai in appeal No. 474/2016-17/CIT(A)- 15 order dated 28.06.2018. Assessment was framed by Deputy Commissioner of Income-tax, Corporate Circle -6(1), Chennai for AY ITA No: 2774/Chny/2018 - 2 - 2014-15 u/s. 143(3) of the Income-tax Act, 1961 (herein after referred to as ‘the Act’) vide order dated 25.12.2016. 2. At the outset it is noted that this appeal is time barred by 8 days as the CIT(A) passed the order on 28.06.2018 which was received by assessee on 01.08.2018 and appeal was filed only on 26.09.2018. In the condonation petition, assessee explained that the appeal is within the time as the order of CIT(A) received only on 01.08.2018 and appeal can be filed on or before 30.09.2018, but actually filed before the Tribunal only on 26.09.2018. We note it that the appeal is filed within the time and there is no delay. 3. The only issue in this appeal of assessee is as regards to the order of CIT(A) upholding the action of the AO in making disallowance of depreciation to the extent of Rs. 63,10,205/-. 4. We have heard rival contentions and gone through the facts and circumstances of the case. Ld. Counsel for the assessee before us stated the facts that the assessee has refurbished it office which is a leasehold premises and claimed 100% depreciation on temporary structure, which are in the nature of wireless access point, false roofing, wall to wall carpet, partition walls of temporary structure which are incapable of ITA No: 2774/Chny/2018 - 3 - being salvaged in the event of vacation of the premises. Ld. Counsel also explained that the Assessing Officer has considered the wrong amount for disallowance while completing the assessment and Assessing Officer has wrongly assumed that the assessee has claimed 100% depreciation on total amount of Rs. 1,26,20,410/-. He stated that the actual facts are that the assessee has made claim of 50% of amount i.e., 63,10,205/- being 50% of the total amount against these assets were put to use w.e.f. 25.03.2014. The Assessing Officer wrongly disallowed the entire amount of Rs. 1,19,89,390/- after reducing 10% of depreciation of 50% i.e., 6,31,021/-. The CIT(A) rectified this mistake but allowed depreciation @ 10% in principal and rectified that the assessee is eligible for 50% of the amount i.e., 63,10,205/-. The Ld. DR could not controvert the above fact situation inspite of specific query raised by the Bench. 5. We noted that the assessee has added the fixed asset for an amount of Rs. 1.26 crores and the same was put to use w.e.f. 25.03.2014 in the financial year 2013-14 relevant to assessment year 2014-15. We noted that the assessee has rightly claimed 50% of the total amount of Rs. 1,26,20,410/- that comes to Rs. 63,10,205/-. The assessee is entitled to this claim of Rs. 63,10,205/- @ 100% depreciation but only half of the depreciation because the asset was put to use only ITA No: 2774/Chny/2018 - 4 - w.e.f. 25.03.2014. Hence, we allow the claim of assessee and accordingly, appeal of the assessee is allowed. 6. In the result, the appeal of the assessee is allowed. Order pronounced on 15 th June, 2022. Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य /ACCOUNTANT MEMBER Sd/- (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चेɄई / Chennai; िदनांक / Dated : 15-06-2022 JPV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आय ु Èत (अपील)/CIT(A) 4. आयकर आय ु Èत/CIT 5. ͪवभागीय ĤǓतǓनͬध/DR 6. गाड[ फाईल/GF