HDFC BANK LTD ( SUCCESSOR TO BUSINESS OF LORD KRISHNA BANK LTD ), MUMBAI V. ACIT 2(3), MUMBAI

ITA 3844/MUM/2010

• Counselvise Citation: 384419914 RSA 2010
• Duration Of Justice: 1 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2003-2004
• Appeal Filed On: 12-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MRUDUL INAMDAR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH: MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.3844/MUM/2010 (ASSESSMENT YEAR: 2003-04) HDFC BANK LIMITED, (SUCCESSOR TO BUSINESS OF LORD KRISHNA BANK LIMITED ), HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI -400 013 ....... APPELLANT VS ACIT -2(3), MUMBAI ..... RESPONDENT PAN: AAACL 4704 F ASSESSEE BY: MR. MRUDUL INAMDAR REVENUE BY: SHRI PAVAN VED O R D E R PER R.S. PADVEKAR, JM THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE IMPUGNED ORDER OF THE LD. CIT (A) -6 MUMBAI DATED 18.3.2010 FOR THE A.Y. 2003- 04. THE ASSESSEE HAS TAKEN THE FOLLOWING EFFECTIVE GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE COMMISSIONER OF INCOME TAX (APPEALS) -6, M UMBAI , [THE CIT (A)] ERRED IN UPHOLDING THE ACTION OF THE ASSTT. COMMISSIONER OF INCOME TAX -2(3), MUMBAI, (THE A.O .) IN RESTRICTING THE DEPRECIATION ON AUTOMATED TELLER MA CHINES (ATMS) TO 25% INSTEAD OF 60% ON THE BASIS OF THE DIRECTIONS GIVEN BY THE COMMISSIONER OF INCOME TAX IN THE ORDER PASSED U/S.263 OF THE INCOME TAX ACT, 1961 ( THE ACT). ITA 3844/MUM/2010 HDFC BANK LIMITED 2 2. HE FAILED TO APPRECIATE AND OUGHT TO HAVE HELD T HAT ATMS ARE AKIN TO COMPUTERS AND THEREFORE ELIGIBLE FOR DE PRECIATION AT 60%. 2. THE FIRST ISSUE IS WHETHER THE DEPRECIATION ON T HE AUTOMATED TELLER MACHINES (ATMS) IS TO BE ALLOWED AT 25% OR 6 0% TREATING THE SAME AKIN TO THE COMPUTERS. 3. WE HAVE HEARD THE PARTIES. THE LD. COUNSEL WAS FAIR ENOUGH TO SUBMIT THAT NOW THIS ISSUE STANDS COVERED AGAINST T HE ASSESSEE BY THE DECISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.908/COCH/2008 DATED 7.1.2011. THE LD. COUNSEL A LSO FILED THE COPY OF THE TRIBUNAL ORDER. WE HAVE ALSO HEARD THE LD. D.R. IN THE ASSESSEES OWN CASE, REFERRED TO SUPRA, THE TRIBUNA L HAS HELD AS UNDER:- 12. THUS THE MUMBAI TRIBUNAL IN THE CASE OF VENTUR E INFOTEK GLOBAL (P) LTD., [25 SOT 184] AFTER DUE DELIBERATIO N AND ELABORATE DISCUSSION HAS GIVEN A SPECIFIC FINDING W ITH REFERENCE TO ATM THAT THEY CANNOT BE CONSIDERED AS COMPUTERS, OR PARTS THEREOF. THEREFORE, RESPECTFUL LY FOLLOWING THE DECISION OF THE ITAT IN THE CASE OF V ENTURE INFOTEK GLOBAL (P) LTD. 25 SOT 184 (MUM)(SUPRA), WE HOLD THAT ATMS CANNOT BE GRANTED DEPRECIATION AT THE RA TES APPLICABLE TO COMPUTERS AND DISMISS THE APPEAL OF T HE ASSESSEE ON THIS ISSUE. 4. WE, THEREFORE, FOLLOWING THE ORDER OF THE TRIBUN AL IN THE ASSESSEES OWN CASE HOLD THAT THE DEPRECIATION IS T O BE ALLOWED AT 25% AND NOT AT 60%. ACCORDINGLY, ALL THE GROUNDS ARE D ISMISSED. ITA 3844/MUM/2010 HDFC BANK LIMITED 3 5. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 3 0TH JUNE 2011. SD/- SD/- ( B. RAMAKOTAIAH ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 30TH JUNE 2011 COPY TO:- 1) THE ASSESSEE. 2) THE REVENUE. 3) THE CIT (A)6, MUMBAI. 4) THE CIT-2, MUMBAI. 5) THE D.R. H BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN ITA 3844/MUM/2010 HDFC BANK LIMITED 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 24.06.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 24.06.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER