M/S NEW PUNJAB MOTOR TRANSPORT , JAMSHEDPUR V. ITO WARD-1(2), JAMSHEDPUR

ITA 315/RAN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0374 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 07-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Keywords: Depreciation
• Section: 40(a)(ia)

Judgement Text

P A G E 1 | 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 315 / RAN /201 7 ASSESSMENT YEAR : 2012 - 13 NEW PUNJAB MOTOR TRANSPORT, ROOM NO.28, DIMNA ROAD, MANGO, JAMSHEDPUR VS. ITO, WARD - 1(2), JAMSHEDPUR PAN/GIR NO. AAFFN 4221 P (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI DEVESH PODDAR, ADV REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 22 / 11 / 2018 DATE OF PRONOUNCEMENT : 22 / 11 / 2018 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), JAMSHEDPUR D ATED 12.9.2017 FOR THE ASSESSMENT YEAR 2012 - 13 . 2. IN GROUND NO .1 OF APPEAL, THE GRIEVANCE OF THE ASSESSE IS THAT THE CIT(A) ERRED IN NOT ALLOWING DEPRECIATION AT HIGHER RATE OF 30% TO THE ASSESSE ON EXCAVATORS. ITA NO.315 /RAN/2017 ASSESSMENT YEAR : 2012 - 13 : P A G E 2 | 6 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER DISALLOWED DEPRECIATION CLAIMED BY THE ASSESS E ON HIGHER RATE OF 30% ON EXCAVATOR AND, THEREBY, MADE AN ADDITION OF RS.10,69,441/ - . 4. ON APPEAL, THE CIT(A) CONFIRMED THE SAME. 5. BEFORE US, LD A.R. OF THE ASSESSE HAS FILED COPY OF ORDER OF THIS BENCH OF THE TRIBUNAL IN THE CASE OF THE ASSESSE ITSELF FOR THE ASSESSMENT YEAR 2010 - 11 AND SUBMITTED THAT THE TRIBUNAL VIDE ITS ORDER DATED 11.3.2016 PASSED IN ITA NO.309 /RAN/2014 HAS CONFIRMED THE ORDER OF THE CIT(A) IN ALLOWING DEPRECIATION ON EXCAVATOR AT HIGHER RATE OF 30% AND, THEREFORE, FOLLOWING THE SA ME, THE DISALLOWANCE MADE SHOULD BE DELETED. 6. LD D.R. AGREED WITH THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSE. 7. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS ON RECORD, I FIND THAT THE TRIBUNAL FOR THE ASSESSMENT YEAR 2010 - 11 VIDE ITS ORDER DATED 11.3.2016 IN THE APPEAL FILED BY THE REVENUE HAS HELD AS UNDER: 18. IN THE ASSESSMENT ORDER, THE AO DID NOT ALLOW HIGHER RATE OF DEPRECIATION AS CLAIMED BY THE ASSESSE. HOWEVER, THE LD CIT(A) DIRECTED THE AO TO ALLOW HIGHER RATE OF DEPRECIATION @ 30% IN RESPECT OF TRUCKS, TRAILERS AND EXCAVATORS. HENCE, THE REVENUE HAS FILED APPEAL ON THIS GROUND. ITA NO.315 /RAN/2017 ASSESSMENT YEAR : 2012 - 13 : P A G E 3 | 6 19. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RECORD OF THE CASE. THE QUESTION BEFORE US WHETHER TRUCKS, TRAILERS AND EXCAVATORS AS C LAIMED BY THE ASSESSE WOULD FETCH HIGHER RATE OF DEPRECIATION OR NOT? WE FIND THAT THE ITAT KOLKATA IN THE CASE OF M/S. BOTHRA SHIPPING SERVICES VS ACIT IN ITA NOS.58 - 61/KOL/2013 FOR ASSESSMENT YEARS 2004 - 05 TO 2007 - 08 ORDER DATED 19.12.2014 CONSIDERED T HE ISSUE AND AFTER DISCUSSING VARIOUS CASE LAWS IN THE SAID ORDER, HELD THAT PAY LOADERS, JCBS AND 400V LOADERS CAN BE CLASSIFIED AS PLANT AND MACHINERY FOR THE PURPOSE OF DEPRECIATION AND NOT AS MOTOR BUS, MOTOR LORRY OR ANY TRANSPORT/GOODS VEHICLES JCB I S ENTITLED TO HIGHER RATE OF DEPRECIATION CLAIMED BY THE ASSESSE. HENCE, RESPECTFULLY FOLLOWING THE SAID DECISION (SUPRA), WE UPHOLD THE FINDINGS OF THE CIT(A) IN ALLOWING HIGHER RATE OF DEPRECIATION. THIS GROUND IS REJECTED. 8. RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL, I SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND ALLOW DEPRECIATION AT THE RATE OF 30% CLAIMED BY THE ASSESSE. 9. IN GROUND NO.2 OF APPEAL, THE GRIEVANCE OF THE ASSESSE IS THAT THE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE O F INTEREST OF RS.4,36,006/ - PAID TO M/S. SREI EQUIPMENT FINANCE PVT LTD., AND M/S. TATA CAPITAL LTD.,TOWARDS PAYMENT OF INSTALMENT OF VEHICLE FINANCE FOR NON - DEDUCTION OF TAX U/S.194C OF THE ACT BY APPLYING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 10. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER DISALLOWED INTEREST PAYMENT OF RS.4,36,006/ - TO M/S. SREI EQUIPMENTS FINANCE PVT LTD., AND M/S. TATA CAPITAL LTD., ON THE GROUND THAT THE ASSESSE FAILED TO DEDUCT TDS U/S.194C OF THE ACT. ITA NO.315 /RAN/2017 ASSESSMENT YEAR : 2012 - 13 : P A G E 4 | 6 11. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 12. BEFORE ME, LD A.R. OF THE ASSESSE HAS FILED ANNEXURE - A TO FORM NO. 26A ISSUED BY THE CHARTERED ACCOUNTANT TO CONTEND THAT THE INTEREST PAID BY THE ASSESSE WAS SHOWN BY M/S. SREI E QUIPMENTS FINANCE PVT LTD., IN THE RETURN OF INCOME FILED AND CONTENDED THAT NO DISALLOWANCE WAS WARRANTED UNDER SECTION 40(A)(IA) OF THE ACT. 13. LD D.R. SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 14. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER DISALLOWED INTEREST PAYMENT OF RS.4,36,006/ - PAID TO M/S. SREI EQUIPMENTS FINANCE PVT LTD., AND M/S. TATA CAPITAL LTD., FOR NON - DEDUCTION OF TDS U/S.194C OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, WHICH WAS CONFIRMED IN APPEAL BY THE CIT(A). 15. BEFORE ME, LD A.R. HAS FILED ANNEXURE - A TO FORM NO.26A ISSUED BY THE CHARTERED ACCOUNTANT TO CONTEND THAT INTEREST INCOME PAID BY THE A SSESSE HAS BEEN SHOWN AS INCOME BY M/S. SREI EQUIPMENTS FINANCE PVT LTD., AND, THEREFORE, NO DISALLOWANCE OF INTEREST INCOME WAS WARRANTED. I FIND THAT TOTAL DISALLOWANCE OF ITA NO.315 /RAN/2017 ASSESSMENT YEAR : 2012 - 13 : P A G E 5 | 6 INTEREST MADE BY THE ASSESSING OFFICER WAS RS.4,36,006/ - . THE ASSESSE HAS FILED FORM 26A OF RS.3,99,765/ - CONTENDING THAT INTEREST PAID BY THE ASSESSE WAS SHOWN AS INCOME BY M/S. SREI EQUIPMENTS FINANCE PVT LTD. THIS DOCUMENT WAS NOT FILED BEFORE THE CIT (A). THEREFORE, I SET ASIDE ORDERS OF LOWER AUTHORITIES ON THIS PART OF THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION AND THEREAFTER TO READJUDICATE THE SAME AS PER LAW. 16. WITH REGARD TO THE BALANCE AMOUNT OF RS.36,241/ - , THE ASSE SSE HAS NOT FILED ANY EVIDENCE NOR MADE ANY ARGUMENTS AS TO WHY THE DISALLOWANCE SHOULD BE DELETED. HENCE, I CONFIRM THE DISALLOWANCE OF RS.36,241/ - 17. IN THE RESULT, APPEAL OF THE ASSESSE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED O N 22 / 11 /2018. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 22 / 11 /2018 B.K.PARIDA, SPS ITA NO.315 /RAN/2017 ASSESSMENT YEAR : 2012 - 13 : P A G E 6 | 6 COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT.S ECRETARY, ITAT, RANCHI ON TOUR 1. THE APPELLANT : NEW PUNJAB MOTOR TRANSPORT, ROOM NO.28, DIMNA ROAD, MANGO, JAMSHEDPUR 2. THE RESPONDENT. ITO, WARD - 1(2), JAMSHEDPUR 3. THE CIT(A) - JAMSHEDPUR 4. PR.CIT - JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//