TRF LTD , JAMSHEDPUR V. ACIT CIR-3, JAMSHEDPUR

ITA 312/RAN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8301 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 06-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDRAJEET SINGH
• Keywords: Depreciation; Additional depreciation
• Section: 32(1)(iia); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JM AND DR. A. L. SAINI, AM I.T.A NOS.310&312/RAN/2017 ASSESSMENT YEARS: 2009-10 & 2010-11 TRF LIMITED 11, STATION ROAD, BURMAMINES, JAMSHEDPUR-831007. VS. ACIT, CIRCLE-3, JAMSHEDPUR PAN/GIR NO. : AAACT6352M ( APPELL ANT ) .. (RESPONDENT) APPELLANT BY SHRI RAHUL SHAH, AR RESPONDENT BY SHRI INDRAJEET SINGH, CIT(DR) DATE OF HEARING 05.03.2020 DATE OF PRONOUNCEMENT 05.03.2020 O R D E R PER BENCH(ORAL): THESE TWO ASSESSEES APPEALS FOR ASSESSMENT YEARS 2009-10 & 2010-11 ARISE AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS), JAMSHEDPUR DATED 12.09.2017 & 15.09.2017 PASSED IN CASE NO.45&44/JSR/2016-17 INVOLVING PROCEEDINGS U/S 154/143(3)/144C(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. APART FROM ASSESSEES IDENTICAL LEGAL GROUND CHALLENGING VALIDITY OF THE IMPUGNED RECTIFICATION PROCEEDINGS TAKE RECOURSE BY THE LEARNED LOWER AUTHORITIES U/S 154 OF THE ACT THAT THESE CASES DO NOT EVOLVE ANY APPARENT ERROR AT THE FACE OF THE ASSESSMENT(S), LEARNED COUNSEL CLARIFIES THAT THE SECOND IDENTICAL ISSUE ON MERITS SEEKS TO REVERSE 32(1)(IIA) ADDITIONAL DEPRECIATION DISALLOWANCE OF RS.57,97,020/- AND 1,38,57,189/-; ASSESSMENT YEAR WISE; RESPECTIVELY. LEARNED CIT-DRS CASE AS BOTH THE LOWER AUTHORITIES REASONING IS THAT THE ASSESSEE HAD CLAIMED THE SAID ADDITIONAL DEPRECIATION DEDUCTION QUA THE FIXED ASSETS NOT PUT TO USE IN THE RELEVANT PREVIOUS YEAR BUT IN EARLIER ASSESSMENT YEARS ONLY. HE ALSO QUOTES THIS TRIBUNALS RECENT DECISION IN WELSPUN CORP. LTD. VS. DCIT ITA 5722/MUM/2015 DECLINING SIMILAR RELIEF TO THE CONCERNED TAXPAYER AS WELL. WE FIND NO MERIT IN REVENUES I.T.A NOS.310&312/RAN/2017 TRF LIMITED 2 FOREGOING ARGUMENT IN LIGHT OF HONBLE MADRAS HIGH COURTS DECISION IN M/S BRAKES INDIA LIMITED VS. DCIT T.C.A NO.551 OF 2013 DATED 14.03.2017 HAS ALREADY REVERSED TRIBUNALS COORDINATE BENCHS ORDER (2017) 82 TAXMANN.COM 238 (CHENNAI-TRIB) ACCEPTING THE REVENUES STAND. THEIR LORDSHIPS HELD THAT NOT ONLY THE IMPUGNED DEPRECIATION RELIEF IS ADMISSIBLE IN CASE OF FIXED ASSETS INSTALLED AND PUT TO USE IN THE RELEVANT PREVIOUS YEAR BUT ALSO QUA THOSE WHICH ALREADY FORM PART OF THE CORRESPONDING BLOCK OF ASSETS AND INSTALLED IN EARLIER ASSESSMENT YEARS. WE THUS RELY HONBLE HIGH COURTS REASONING MUTATIS MUTANDIS AND ACCEPT THE ASSESSEES ADDITIONAL DEPRECIATION CLAIM ON MERITS. THE ASSESSING OFFICER IS DIRECTED TO DELETE THE IMPUGNED DISALLOWANCE. 3. THESE TWO ASSESSEES APPEALS ARE ALLOWED ON MERITS IN ABOVE TERMS. ORDER IS PRONOUNCED IN THE OPEN COURT ON 05.03.2020. SD/- SD/- (A. L. SAINI) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:05.03.2020. RS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER SR. P.S., ITAT, RANCHI (ON TOUR)