The ITO, Ward-2(4), Surat V. Shri Lakhabhai S.Gondalia, Surat

ITA 372/AHD/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6096 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 11-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: KAMLESH N BHATT
• Keywords: Depreciation; Additional depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER DATE OF HEARING : 15/07/2011 DRAFTED ON: 1 8/07/2011 ITA NO.372/AHD/2011 ASSESSMENT YEAR : 2007-08 INCOME TAX OFFICER WARD-2(4) MAJURA GATE, SURAT VS. SHRI LAKHABHAI S.GONDALIA PROP.OF M/S.MAKER SYNTHETICS PLOT NO.316, ROAD NO.3 B/H. GIDC OFFICE SACHIN, SURAT PAN/GIR NO. : ABRPG 1582 H ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI B.L. YADAV, D.R. RESPONDENT BY: SHRI KAMLESH N.BHATT, A.R. O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE W HICH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-II, SURAT D ATED 23/11/2010 AND THE SOLITARY SUBSTANTIAL GROUND READS AS UNDER:- [1} ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON A CCOUNT OF DISALLOWANCE OF ADDITIONAL DEPRECIATION CLAIMED U/S .32(1)(IIA) OF THE I.T. ACT, ON MACHINERY USED FOR EMBROIDERY WORK . 2. THE ONLY ISSUE WHICH HAS BEEN AGITATED BY THE R EVENUE IS IN RESPECT OF ALLOWABILITY OF ADDITIONAL DEPRECIATION ON EMBROIDERY ITA NO .372/AHD/2011 ITO VS. SH. LAKHABHAI S.GONDALIA ASST.YEAR - 2007-08 - 2 - MACHINERY. WHILE DECIDING THIS ISSUE, THE LEARNED CIT(APPEALS) HAS FOLLOWED FEW DECISIONS OF THIS TRIBUNAL AS IS EVIDE NT FROM THE FOLLOWING PARAGRAPH:- 3. UPON CONSIDERING THE SUBMISSION OF THE APPELLA NT, I FIND THAT THE ABOVE ISSUE HAS BEEN DECIDED AGAINST THE REVENU E BY THE AHMEDABAD BENCH OF THE ITAT IN ITA NO.1569/AHD/2010 (A.Y. 2007-08) AND ITA NO.2103/AHD/2010 (A.Y. 2007-08) IN CASES OF HARIPRIYA PROCESSORS PVT.LTD. AND M/S.ASWANI INDUST RIES, SURAT RESPECTIVELY. I, THEREFORE, RELYING UPON THE ABOVE DECISIONS AND MY ORDER IN APPEAL NO.CAS-11/328/09-10 HOLD THAT EMBRO IDERY WORK DONE ON THE EMBROIDERY MACHINE IS AN ACTIVITY OF MA NUFACTURING. THE APPELLANT IS, THEREFORE, ENTITLED TO ADDITIONAL DEPRECIATION U/S.32(1)(IIA) OF THE ACT, AND I DIRECT THE ASSESSI NG OFFICER TO ALLOW THE SAME. THIS GROUND OF APPEAL IS ALLOWED. 3. NOW BEFORE US, THE FOLLOWING DECISIONS ARE PLACE D ON RECORD:- SL.NO(S) DECISION IN THE CASE OF IN ITA NO(S) 1. ITO VS. M/S.ASWANI INDUSTRIES, SURAT 213/AHD/2010 A.Y. 2007-08 DATED 29/10/2010 2. ITO VS. HARIPRIYA PROCESSORS PVT.LTD. 1569/AHD/2010 A.Y. 2007-08 DATED08/09/2009 4. RESPECTFULLY FOLLOWING THESE DECISIONS, WE FIND NO FALLACY IN THE VIEW TAKEN BY THE LEARNED CIT(APPEALS). REVENUES THIS GROUND IS DISMISSED. ITA NO .372/AHD/2011 ITO VS. SH. LAKHABHAI S.GONDALIA ASST.YEAR - 2007-08 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 22 ND JULY, 2011. SD/- SD/- ( A.N. PAHUJA ) ( MU KUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD; DATED 22 ND JULY, 2011 T.C. NAIR, SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPARTMENT. 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-II, SURAT 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD 1. DATE OF DICTATION..18/07/2011 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18/07/2011 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S22.7.11 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22.7.11 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER .. 9. DATE OF DESPATCH OF THE ORDER