DCIT, CHENNAI V. M/s. Ramsays Corporation (P) Ltd., CHENNAI

ITA 2826/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8081 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 29-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Keywords: Depreciation; Revenue expenditure
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , ! ' . #$ % &' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.2826/MDS./2016 / ASSESSMENT YEAR : 2012-13 THE DCIT, CORPORATE CIRCLE 5(1), CHENNAI-34. VS. M/S.RAMSAYS CORPORATTION (P) LTD.,18, L.G.N.ROAD,CHENNAI 600 002. [PAN AADCR 8596 A ] ( () / APPELLANT) ( *+() /RESPONDENT) / APPELLANT BY : SHRI SHIVA SRINIVAS, JCIT D.R /RESPONDENT BY : SHRI SENTHIL KUMAR,ADVOCATE / DATE OF HEARING : 26 - 1 2 - 2016 / DATE OF PRONOUNCEMENT : 25 - 01 - 2017 , / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-3,CHENNAI DATED 29.06.2016 PERTAINING TO ASSESSMENT YEAR 2012-13. 2. THE MAIN GRIEVANCE OF THE REVENUE IN ITS APPEAL IS THAT LD.CIT(A) ERRED IN TREATING THE COST OF SPARES AND TOOLS AS REVENUE EXPENDITURE. ITA NO.2826/16 :- 2 -: 3. AFTER HEARING BOTH THE PARTIES, SIMILAR ISSUE C AME FOR CONSIDERATION BEFORE THIS TRIBUNAL IN ITA NO.2270/M DS./15 FOR ASSESSMENT YEAR 2011-12 DATED 16.03.2016 WHEREIN HE LD THAT:- WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MAT ERIAL ON RECORD. IN OUR OPINION, THE ARGUMENT OF THE LD. DR IS MISPLACED AS JURISDICTIONAL HIGH COURT IN THE CASES CITED SUPRA CATEGORICALLY HELD THAT COST OF MOULDS AND DI ES WOULD BE ALLOWABLE AS AN EXPENDITURE U/S.31 AS THE OBJECT OF THE EXPENDITURE WAS NOT FOR BRINGING INTO EXISTENCE A N EW ASSET OR TO OBTAIN A NEW ADVANTAGE. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF I NCOME- TAX(APPEALS) ON THIS GROUND AND THE SAME IS CONFIRM ED. THE ABOVE VIEW IS ALSO SUPPORTED BY THE JUDGEMENTS OF JURISDICTIONAL HIGH COURT IN THE ASSESSEE OF CIT VS. TVS MOTORS LT D., IN 364 ITR 01 AND CIT VS. ADITYA FERRO ALLOYS P. LTD. IN [2014] 3 66 ITR 490 (MAD) AND THE ASSESSEES CLAIM FOR DEPRECIATION TO BE ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED ON 25 TH JANUARY, 2017, AT CHENNAI. SD/ - SD/ - ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) % / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER () / CHENNAI *+ / DATED: 25 TH JANUARY, 2017. K S SUNDARAM +,-- ./-0/ / COPY TO: - 1 . / APPELLANT 3. - 1-!' / CIT(A) 5. /23- 4 / DR 2. / RESPONDENT 4. - 1 / CIT 6. 3&-5 / GF