The Income-tax Officer, Amritsar. V. M/s. S.S. Embroidery, Amritsar.

ITA 324/ASR/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63475 (ITAT-AMRITSAR)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 01-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIK CHAND
• Keywords: Depreciation; Opportunity of being heard
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.324 (ASR)/2012 ASSESSMENT YEAR:2007-08 PAN :AAQFS0551Q THE INCOME TAX OFFICER, VS. M/S. S.S. EMBROIDERS, WARD 5(4), AMRITSAR. MAJITHA ROAD, AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. AMRIK CHAND, DR RESPONDENT BY: NONE DATE OF HEARING:20/09/2012 DATE OF PRONOUNCEMENT:20/09/2012 ORDER PER BENCH ; THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER O F THE CIT(A), AMRITSAR, DATED 10.05.2012 FOR THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPE AL: 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN ALLOWING 50% DEPRECIATION ON MACHINERY CLA IMED TO HAVE BEEN PURCHASED UNDER TUFS AGAINST 15% ALLOWED BY THE A.O. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(A) HAS ERRED IN HOLDING THAT THE USE OF WORDS PROCESSING AND UTILIZATION OF MACHINERY IN ANY ACTIVITY IN TEXTILE INDUSTRY TO BE ITA NO.324(ASR)/2012 2 ELIGIBLE TO CLAIM DEPRECIATION U/S 32 OF THE INCOME -TAX ACT, 1961 BY EQUATING THE DEPRECIATION WITH DEVELOPMENTS REBATE. 3. THE ORDER OF THE LD. CIT(A) IS VACATED AND THAT OF THE A.O. BE RESTORED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FIRM HAD CLAIMED DEPRECIATION OF 50% ON EMBROIDERY MACHINERY PURCHAS ED UNDER TUFS AS AGAINST 15% ADMISSIBLE AS PER INCOME TAX RULES. THE ASSESSEE SUBMITTED THE EXPLANATION WHICH WAS NOT FOUND SATISFACTORY BY THE A.O. AND ACCORDINGLY, THE A.O. RESTRICTED THE ASSESSEES CLA IM OF DEPRECIATION CLAIMED @ 50% TO 15% RESULTING INTO DISALLOWANCE AMOUNTING TO RS.3,70,916/-. 4. THE LD. CIT(A) FOLLOWING THE DECISION OF THE ITA T, AMRITSAR BENCH DATED 23.04.2012 IN ASSESSEES OWN CASE FOR THE ASS ESSMENT YEARS 2005-06 & 2006-07 IN ITA NOS. 357 & 358(ASR)/2010, WHICH WAS DECIDED IN ASSESSEES FAVOUR BY DISMISSING REVENUES APPEAL, WHERE THE AS SESSEE WAS ENTITLED FOR HIGHER RATE OF DEPRECIATION OF 50% UNDER TUFS INST EAD OF 15% ALLOWED BY THE AO. 5. NONE ATTENDED ON BEHALF OF THE ASSESSEE INSPITE OF AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD. THEREFORE, WE ARE DECID ING THE PRESENT APPEAL EX-PARTE AFTER HEARING THE LD. DR, MR. AMRIK CHAND. . IT WAS BROUGHT TO OUR NOTICE BY THE LD. DR THAT THE SAID ISSUE HAD ALREA DY BEEN DECIDED BY THIS BENCH IN ASSESSEES OWN CASE , AS OBSERVED BY THE L D. CIT(A) IN THE PRESENT ITA NO.324(ASR)/2012 3 CASE IN PARA 9.1 OF HIS ORDER AGAINST THE REVENUE A ND IN FAVOUR OF THE ASSESSEE. 6. SINCE THE ISSUE IN THE PRESENT APPEAL IS IDENTIC AL TO THE ISSUE IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2005-0 6 & 2006-07 DECIDED BY THIS BENCH (SUPRA) AGAINST THE REVENUE AND IN FAVOU R OF THE ASSESSEE.. THEREFORE, FOLLOWING OUR OWN DECISION IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEARS 2005-06 & 2006-07 (SUPRA), WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A), WHO HAS RIGHTLY HELD THE C LAIM OF DEPRECIATION ON EMBROIDERY MACHINERY PURCHASED @ 50%. THUS, ALL THE GROUNDS OF THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I N ITA NO.324(ASR)/2012 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20TH SEPTEMBER, 2012. (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 20TH SEPTEMBER, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. S.S. EMBROIDERY, AMRITSAR. 2. THE ITO WARD 5(4), AMRITSAR. 3. THE CIT(A) 4. THE CIT 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER