ACIT, Faridabad V. M/s Oswal Electricals, Faridabad

ITA 2955/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77716 (ITAT-DELHI)
• Duration Of Justice: 44 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2014
• Appeal Filed By: Department
• Assessment Year: misc
• Appeal Filed On: 01-01-1970
• Court: TRIBUNAL
• Department Lawyers: R R MAURYA; MRS SHASHI KAPILA
• Assessee Lawyers: GAGAN SOOD
• Keywords: Depreciation; Revenue expenditure; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, AM AND SHRI RAJPAL YADAV, JM ITA NO: 2955/DEL/2013 AY : - 2009-10 ACIT, CIRCLE 1 VS. OSWAL ELECTRICALS FARIDABAD 49, INDUSTRIAL AREA NIT, FARIDABAD PAN: AAAO 1636 Q (APPELLANT) (RESP ONDENT) APPELLANT BY : MRS.SHASHI KAPILA, ADV. AND SHRI R.R.MAURYA, ADV. RESPONDENT BY: SHRI GAGAN SOOD, SR.D.R. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGA INST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (CENTRAL), GURG AON DT. 26.2.2013 PERTAINING TO THE ASSESSMENT YEAR 2009-10. 2. THE SOLE ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER REPLACEMENT OF DIES IS CAPITAL EXPENDITURE OR IS IN THE NATURE O F REVENUE EXPENDITURE? PAGE 2 OF 3 3. AFTER HEARING RIVAL CONTENTIONS WE FIND THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS FOLLOWED THE ORDER OF THIS BENCH OF THE TRIBUNAL IN ITA NO.2147/DEL/2008 DT. 17.4.2009 FOR THE ASSESSMENT Y EAR 2004-05. AT PARA 4 HE HELD AS FOLLOWS. I HAVE CONSIDERED THE ASSESSEES SUBMISSIONS AND T HE IMPUGNED ORDER. I HAVE ALSO PERUSED THE COPY OF THE ORDER OF THE HONBLE I TAT IN ITA NO.2147/DEL/2008 DT. 17.4.2009 FOR ASSESSMENT YEAR 2004-05. SIMILAR LY THE ORDERS OF CIT(A), LUDHIANA DT. 28.1.2011 FOR ASSESSMENT YEAR 2005-06 TO 2007-08 HAVE ALSO BEEN PERUSED WHEREIN THE REPLACEMENT OF DIES WAS HELD TO BE IN THE NATURE OF REVENUE EXPENDITURE, FOLLOWING THE DECISION OF THE HONBLE ITAT (SUPRA) IN ASSESSEES OWN CASE. THUS AS THE ISSUE STANDS COVE RED IN FAVOUR OF THE ASSESSEE, THE ASSESSING OFFICER IS DIRECTED TO DELE TE THE ADDITION OF RS.61,75,000/- AS THE SAID EXPENDITURE HAS BEEN HEL D TO BE CAPITAL EXPENDITURE. CONSEQUENTLY THE DEPRECIATION WORKED OUT TO RS.10,8 0,625/- BY VIRTUE OF THE TREATMENT AS REVENUE BY THE ASSESSING OFFICER IS AL SO DIRECTED TO BE DELETED. THE ASSESSEE THEREFORE SUCCEEDS IN THESE GROUNDS OF APPEAL. 4. CONSISTENT WITH THE VIEW TAKEN BY THE TRIBUNAL I N THE ASSESSEES OWN CASE IN ITA 2147/DEL/2008 (SUPRA) IN THE EARLIER ASSESSM ENT YEAR 2004-05, WE UPHOLD THE ORDER OF THE LD.COMMISSIONER OF INCOME T AX(APPEALS), AND DISMISS THE APPEAL OF THE REVENUE. IN THE RESULT THE APPEA L OF THE REVENUE IS DISMISSED. PAGE 3 OF 3 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST MAY,2014. SD/- SD/- - (RAJPAL YADAV) (J .SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 21 ST MAY, 2014 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR