M/S SG SNACKS INDIA PVT LTD, Madurai V. ITO CORP WARD 3, Madurai

ITA 412/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1054 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 05-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: K RAMA MOHAN
• Keywords: Depreciation; Additional depreciation; Revised return

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.412/CHNY/2018 ( )( / ASSESSMENT YEAR : 2014-15 M/S SG SNACKS INDIA PVT. LTD., PLOT NO.12, SRI ANNAI MEENAKSHI NAGAR II CROSS, NEAR RAGHAVENDRA NAGAR, MADURAI. PAN : AASCS 8051 N V. THE INCOME TAX OFFICER, CORPORATE WARD 3, MADURAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI K. RAMA MOHAN, CA -.+, / 0 / RESPONDENT BY : MS. S. VIJAYAPRABHA, JCIT 1 / 2% / DATE OF HEARING : 13.08.2018 3') / 2% / DATE OF PRONOUNCEMENT : 12.09.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, MADURAI, D ATED 12.12.2017 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. SHRI K. RAMA MOHAN, THE LD. REPRESENTATIVE FOR T HE ASSESSEE, SUBMITTED THAT THE ASSESSEE CLAIMED ADDITIONAL DEPR ECIATION OF 2 I.T.A. NO.412/CHNY/18 84,16,727/- BY FILING REVISED RETURN. ACCORDING TO THE LD. REPRESENTATIVE, IN THE ORIGINAL RETURN, THE ASSESSEE CLAIMED DEPREC IATION OF 67,58,435/-. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE A SSESSEE ON THE GROUND THAT THE ASSESSEE IS DOING JOB WORK OF M/S P ARLE BISCUITS PVT. LTD. AND NOT DOING ANY MANUFACTURING ACTIVITY. ACCORDIN G TO THE LD. REPRESENTATIVE, THE RAW POTATO AND PACKING MATERIAL ARE SUPPLIED BY M/S PARLE BISCUITS PVT. LTD. THE COMPANY IS RAISING IN VOICE EXCLUDING THE COST OF POTATO AND PACKING MATERIAL. EVEN IF THE MANUFA CTURING OF POTATO IS DONE ON JOB WORK BASIS, ACCORDING TO THE LD. REPRES ENTATIVE, THE ASSESSEE IS ENTITLED FOR ADDITIONAL DEPRECIATION AS CLAIMED. 3. ON THE CONTRARY, MS. S. VIJAYAPRABHA, THE LD. DE PARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE ASSESSEE IS NOT DOING ANY MANUFACTURING ACTIVITY OF ITS OWN. THE ASSESSEE IS DOING JOB WORK. EVEN THOUGH THE AGREEMENT PROVIDES FOR MANUFACTURING OF POTATO CHIPS IN ITS BRAND, ACCORDING TO THE LD. D.R., THE ASSESSEE IS N OT MANUFACTURING ANY POTATO CHIPS OF ITS OWN BRAND. THE ASSESSEE CONTIN UED TO MANUFACTURE POTATO CHIPS FOR AND ON BEHALF OF M/S PARLE BISCUIT S PVT. LTD. THE POTATO AND OTHER RAW MATERIAL AND PACKING MATERIAL WERE SU PPLIED BY M/S PARLE BISCUITS PVT. LTD. THEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) HAS RIGHTLY CONFIRMED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER. 3 I.T.A. NO.412/CHNY/18 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ASSESSEE IS ADMITTEDLY ENGAGED IN THE BUSINESS OF MANUFACTURING POTATO CHIPS. THE ASSESSEE CLAIMED DEPRECIATION OF 67,58,435/- IN THE ORIGINAL RETURN. BY WAY OF REVISED RETURN, THE ASSESSEE ALSO CLAIMED AD DITIONAL DEPRECIATION OF 84,16,727/-. THE ASSESSING OFFICER DISALLOWED THE C LAIM OF THE ASSESSEE ON THE GROUND THAT THE ACTIVITY OF THE ASS ESSEE IS MANUFACTURING POTATO CHIPS BY USING THE RAW MATERIAL SUPPLIED BY M/S PARLE BISCUITS PVT. LTD. IT DOES NOT AMOUNT TO MANUFACTURING ACTIVITY. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT EVEN THOUGH THE RAW MATERIA L WAS SUPPLIED BY M/S PARLE BISCUITS PVT. LTD., THE ACTIVITY OF THE A SSESSEE IN PREPARING THE POTATO CHIPS FROM RAW POTATO AND PACKING THE SAME B Y PACKING MATERIAL SUPPLIED BY M/S PARLE BISCUITS PVT. LTD. AMOUNTS TO MANUFACTURING ACTIVITY. HOWEVER, THE DETAILS OF MACHINERIES INST ALLED BY THE ASSESSEE ARE NOT AVAILABLE ON RECORD. THEREFORE, THE ASSESS ING OFFICER SHALL RE- EXAMINE THE MATTER AND BRING ON RECORD THE DETAILS OF MACHINERIES INSTALLED FOR MANUFACTURING POTATO CHIPS. ACCORDIN GLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSU E RAISED BY THE ASSESSEE IS REMITTED BACK TO THE FILE OF THE ASSESS ING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER AND A FTER VERIFYING THE DETAILS OF MACHINERIES SAID TO BE INSTALLED BY THE ASSESSEE, SHALL DECIDE 4 I.T.A. NO.412/CHNY/18 THE ISSUE AFRESH IN THE LIGHT OF THE OBSERVATION MA DE BY THIS TRIBUNAL IN THIS ORDER. 5. WITH THE ABOVE OBSERVATION, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 12 TH SEPTEMBER, 2018 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 12 TH SEPTEMBER, 2018. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-1, MADURAI 4. PRINCIPAL CIT, MADURAI-1/2, MADURAI 5. 7: -2 /DR 6. ( ; /GF.