DCIT, Sikar V. M/S SORABH CEMENT LTD, Sikar

ITA 338/JPR/2009

• Counselvise Citation: 33823114 RSA 2009
• Duration Of Justice: 2 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2002-2003
• Appeal Filed On: 29-04-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Depreciation
• Section: 32

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO. 338/ JP/2009 ASSESSMENT YEAR 2002-03 PAN: AADFS 7663 L THE DCIT VS. M/S. SORABH CEMENT LTD. CIRCLE- SIKAR NEEMKATHANA, DISTT. SIKAR DISTT. SIKAR (APPELLANT ) (RESPONDENT) ASSESSEE BY: NONE DEPARTMENT BY : SHRI D.K. MEENA DATE OF HEARING: 03-10-2011 DATE OF PRONOUNCEMENT:07-10-2011 ORDER PER N.L. KALRA, AM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)- III, JAIPUR DATED 21-01-2009 FOR THE ASSESSMEN T YEAR 2002-03. 2.1 THE GROUND OF APPEAL RAISED BY THE REVENUE IS A S UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAE, THE LD.CIT(A) HAS ERRED IN ALLOWING THE DEPRECIATIO N ON THE PLANT AND EVEN WHEN THE ASSESSEE HAS NOT EXACTLY IDENTIFIED THE PLANT AND MACHINERY WHICH HAS BEEN GIVEN ON HIRE AND ON WHICH DEPRECIATION HAS BEEN CLAIMED. 2 2.2 WE HAVE HEARD THE LD. DR AND PERUSED THE MATERI ALS AVAILABLE ON RECORD. THE ASSESSEE HAS SHOWN THE JOB WORK/ HIRE C HARGES IN PROFIT & LOSS A/C. THE LD.CIT(A) HAS DIRECTED TO ALLOW DEDUCTION U/S 32 OF THE ACT IN TERMS OF SECTION 56(1)(II) OF THE ACT. WHILE ALLOWING DEP RECIATION, THE AO WILL VERIFY THE ASSETS WHICH HAVE BEEN GIVEN ON HIRE AND ON THOSE ASSETS THE DEPRECIATION WILL BE ALLOWED. THE HON'BLE HIMACHAL HIGH COURT IN THE CASE OF CIT VS KRITI RESORTS (P) LTD. , 243 CTR 341 HELD THAT THE COMPANY DID NOT CEASE AND HENCE, THE DEPRECIATION IS TO BE ALLOWED ON THE ASSETS USED BY THE COMPANY. THUS THE ISSUE OF QUANTUM OF DEPRECIATION IS RESTORED BACK ON THE FILE OF THE AO. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 07-10 -2011 SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 07 /10/2011 *MISHRA COPY FORWARDED TO :- 1. THE DCIT, CIRCLE- SIKAR 2. M/S. SAURABH CEMENT LTD., NEEMKATHANA, SIKAR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.338/JP /09) A.R, ITAT, JAIPUR 3