The DCIT, Circle-2, Surat V. Shri Pankaj Chugh, Surat

ITA 3281/AHD/2011

• Counselvise Citation: 328120514 RSA 2011
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 29-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Additional depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C AHMEDABAD BEFORE SHRI, A.K.GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.3281/AHD/2011 ASSESSMENT YEAR: 2008-09 DY. COMMISSIONER OF INCOME-TAX, CIRCLE-2, ROOM NO.110, 1 ST FLOOR, AAYAKAR BHAVAN, MAJURAGATE, SURAT 395001 V/S . SHRI PANKAJ CHUGH, PROP. OF M/S. LAXMI SYNTHETICS & ADITYA EMBROIDERY, B-2556-60, MILLENIUM TEX MARKET, RING ROAD, SURAT PAN NO.AAOPC5848E (APPELLANT) .. (RESPONDENT) / BY APPELLANT SHRI VINOD TANWANI, SR-DR / BY RESPONDENT NONE / DATE OF HEARING 28-02-2012 / DATE OF PRONOUNCEMENT 07-03-2012 O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-II, SURAT DATED 19-09-2011 FOR THE ASSESSMENT YEAR 2008- 09. THE GROUND RAISED BY THE REVENUE IS AS UNDER:- [1] ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A)-II SURAT HAS ERRED IN DELETING ADDITION OF R S.18,65,419/- AS MADE ON ACCOUNT OF ADDITIONAL DEPRECIATION CLAIMED BY THE A SSESSEE ON NEW PLANT & MACHINERY WITHOUT APPRECIATING THE FACT THAT THE AS SESSEE WAS DING EMBROIDERY JOB WORK FINISHED CLOTH WHICH EMBROIDERY IS NEITHER MANUFACTURING ACTIVITY NOR PROCESSING ACTIVITY. THE ASSESSEE WAS DOING ONLY SIMPLE VALUE ADDITION ON FINISHED PRODUCT ALREADY IN EXISTENCE W ITHOUT CHANGING ITS COMPOSITION & NATURE OF THE PRODUCT. THE BENEFIT OF SECTION 32(1)(IIA) OF THE I.T. ACT IS ELIGIBLE FOR ASSESSEE WHO ARE IN THE BU SINESS OF MANUFACTURING OR PRODUCTION OF ANY ARTICLE OR THING. [2] ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. ITA NO.3281/AHD/2011 A.Y. 2008-09 DCIT, CIR-2, SRT V. SH PANKAJ CHUGH PAGE 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF NOTICE WHICH HAS BEEN DULY SERVED UPON THE ASSESSEE AND HENCE WE PROCEED TO DECIDE THIS APPEAL OF THE REVENUE EX PARTE QUA THE ASSESSEE. 3. WE HAVE HEARD THE LD. DR WHO SUPPORTED THE ASSES SMENT ORDER. WE HAVE CONSIDERED AND GONE THROUGH THE RECORD. WE FIND THA T THE ISSUE INVOLVED IN THE PRESENT APPEAL IS REGARDING ALLOWABILITY OF ADDITIO NAL DEPRECIATION IN RESPECT OF MACHINERY SAID TO BE USED BY THE ASSESSEE FOR THE B USINESS BEING CARRIED OUT BY HIM FOR DOING EMBROIDERY WORK ON SYNTHETIC FABRIC ON JO B BASIS. LD. CIT(A) HAS DELETED THE DISALLOWANCE OF ADDITIONAL DEPRECIATION BY FOLL OWING THE TRIBUNALS DECISIONS RENDERED IN THE CASE OF HARIPRIYA PROCESSORS PVT. LTD. IN ITA NO. 1569/AHD/2010 AND IN THE CASE OF M/S ASWANI INDUSTRIES IN ITA NO.2103/AHD/2010 . LD. DR COULD NOT SHOW AS TO HOW THESE TWO TRIBUNALS DECISION AR E NOT APPLICABLE IN THE PRESENT CASE. HENCE, WE DO NOT FIND ANY INFIRMITY IN THE OR DER OF LD. CIT(A). 4. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 07/03 /2012 SD/- SD/- (A.K.GARODIA) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP -07/03/2012 ()* + ,- ,- ,- ,- ../ ../ ../ ../ 0/ 0/ 0/ 0/ / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. *.2 , ,3 / CONCERNED CIT 4. , ,3- / CIT (A) 5. /67 ...2, , .2 , ()* / DR, ITAT, AHMEDABAD 6. 7:; <= / GUARD FILE. BY ORDER/ ,- , /TRUE COPY/ >/ ( ? , .2 , ()* +