Sabarmati Gas Ltd., Ahmedabad V. The Jt.CIT.,GNR Range, Gandhinagar

ITA 3061/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5966 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-05-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 23-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP KUMAR MAJUMDAR
• Assessee Lawyers: PARIN SHAH ARS; S N SOPARKAR
• Keywords: Depreciation; Additional depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.3061/AHD/2013 ( / ASSESSMENT YEAR : 2009-10) SABARMATI GAS LIMITED 701-702, REGENCY PLAZA, OPP. RAHUL TOWER NEAR MADHUR HALL, ANAND NAGAR CROSS ROAD SATELLITE, AHMEDABAD-380015 / VS. THE JCIT GANDHINAGAR RANGE GANDHINAGAR $ ./ ./ PAN/GIR NO. : ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : SHRI S.N. SOPARKAR & SHRI PARIN SHAH, ARS ($'*) / RESPONDENT BY : SHRI PRADEEP KUMAR MAJUMDAR, SR.DR +,*- / DATE OF HEARING 02/05/2017 ./0*- / DATE OF PRONOUNCEMENT 04/ 05/2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE PRESENT APPEAL BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR , [CIT(A) IN SHORT] DATED 11/11/2013 FOR THE ASSESSMENT YEAR (AY) 2009-10. ITA NO.3061/AHD /2013 SABARMATI GAS LTD. VS. JCIT ASST.YEAR 2009-10 - 2 - 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS. HOWE VER, IN ESSENCE, THE ASSESSEE SEEKS TO CHALLENGE THE DISALLOWANCE OF ADDITIONAL DEPRECIATION OF RS.19,07,195/- CLAIMED BY THE ASSES SEE ON PLANT & MACHINERY, NAMELY CNG STATIONS. 3. BRIEFLY STATED, THE ASSESSEE DURING THE YEAR PUR CHASED CERTAIN PLANT & MACHINERY IN THE NATURE OF CNG STATION VALU ED RS.1,89,14,144/- ON WHICH ADDITIONAL DEPRECIATION @ 20% WAS CLAIMED AS WORKED OUT TO RS.19,07,195/- UNDER S.32(1)(IIA) OF THE ACT. IT I S THE CASE ON BEHALF OF THE ASSESSEE THAT THE ASSESSEE IS SQUARELY COVERED UNDER THE ACTIVITY OF MANUFACTURING IN VIEW OF THE DECISION OF THE HO NBLE GUJARAT HIGH COURT IN THE CASE OF CIT V/S. GSPC GAS COMPANY LTD. IN TAX APPEAL NO.1084 OF 2014, ORDER DATED 29/09/2014. SIMILAR V IEW IS STATED TO BE TAKEN IN ASSESSEES OWN CASE IN ITA NO.2956/AHD/201 0 ORDER DATED 02/03/2016 RELEVANT TO AY 2007-08 (ORDERS PLACED IN FILE). IN THE LIGHT OF AFORESAID DECISIONS, IT IS CONTENDED ON BEHALF OF T HE ASSESSEE THAT THE COMPOSITION OR PROPERTIES OF GAS CHANGES WHEN IT IS COMPRESSED WHICH TANTAMOUNTS TO MANUFACTURE. IT IS THEREFORE CON TENDED ON BEHALF OF THE ASSESSEE THAT THE ASSESSEE IS ELIGIBLE FOR BENEFIT OF ADDITIONAL DEPRECIATION AS CONTEMPLATED UNDER S.32(1)(IIA) OF THE ACT. 4. THE LD.DR RELIED UPON THE DETAILED ORDER OF THE CIT(A) FOR REJECTION OF ADDITIONAL DEPRECIATION CLAIMED BY THE ASSESSEE. ITA NO.3061/AHD /2013 SABARMATI GAS LTD. VS. JCIT ASST.YEAR 2009-10 - 3 - 5. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS MAD E. THE SOLITARY ISSUE IS INVOLVED IN THE PRESENT CASE WHETHER PROCE SS OF COMPRESSION OF NATURAL GAS IS MANUFACTURING ACTIVITY AND CONSEQUEN TLY PLANT & MACHINERY USED FOR SUCH MANUFACTURING ACTIVITY IS E LIGIBLE TO ADDITIONAL DEPRECIATION AS CONTEMPLATED UNDER S.32(1)(IIA) OF THE ACT OR NOT. 6. WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FA VOUR OF ASSESSEE BY THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2007-08 REFERRED HEREINABOVE AS WELL AS BY THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF GSPC GAS COMPANY LTD.(SUPRA). IN BOTH THESE DECISIONS, THE ACTIVITY OF THE ASSESSEE WAS VIEWED AS MANUFACT URING ACTIVITY. CONSEQUENTLY, THE ASSESSEE IS ENTITLED TO ADDITIONA L DEPRECIATION AS ENVISAGED UNDER S.32(1)(IIA) OF THE ACT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . THIS ORDER PRONOUNCED IN OPEN COURT ON 04/ 05/2017 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 04/ 05 /2017 4..+,.+../ T.C. NAIR, SR. PS ITA NO.3061/AHD /2013 SABARMATI GAS LTD. VS. JCIT ASST.YEAR 2009-10 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)- 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. (DICTATION-PAD PAGES ATT ACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.4.5.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 4.5.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER