ESSAR PROJECTS (I) LTD (FORMELRY ESSAR CONSTRCTIONS (I) LTD), MUMBAI V. DCIT 5(1), MUMBAI

ITA 4244/MUM/2011

• Counselvise Citation: 424419914 RSA 2011
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B JAYA KUMAR
• Assessee Lawyers: ANUJ KISHNADWALA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E, MUMBAI BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER & SHRI VIVEK VERMA, JUDICIAL MEMBER. I.T.A. NO. 4244/MUM/2011. ASSESS MENT YEAR : 2007-08. M/S ESSAR PROJECTS (INDIA) LTD., DY. COMMISSIONER OF (FORMERLY ESSAR CONSTRUCTIONS VS. INCOME-TAX- 5(1), (INDIA) LIMITED, MUMBAI. ESSAR HOUSE, 11 KK MARG, MAHALAXMI, MUMBAI 400034. PAN AAACE2358J APPELLANT. RESPONDENT. APPELLANT BY : SHR I ANUJ KISHNADWALA RESPONDENT BY : SHRI B. JAYA KUMAR. DATE OF HEARI NG : 27-03-2012. DATE OF PRONOUNC EMENT : 30-03-2012 O R D E R PER P.M. JAGTAP, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LEARNED CIT(APPEALS)-9, MUMBAI DATED 31-03-2011 AND THE SOL ITARY ISSUE ARISING OUT OF THE SAME RELATES TO THE DISALLOWANCE OF RS.2,23,625/- M ADE BY THE AO AND CONFIRMED BY THE LEARNED CIT(APPEALS) ON ACCOUNT OF DEPRECIAT ION CLAIMED ON TWO ITEMS OF MACHINERY. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT IN THE PREV IOUS YEAR RELEVANT TO ASSESSMENT 2 ITA NO. 4244/MUM/2011 YEAR 2001-02, TWO ITEMS OF MACHINERY VIZ. CEMENT MO TOR SPRAYING MACHINE AND TM30E MIXER PUMP WERE CLAIMED TO BE PURCHASED BY TH E ASSESSEE FROM M/S ESSAR PROJECTS LTD. FOR RS.33,38,176/- AND RS.29,96,981/- . THE DEPRECIATION CLAIMED BY THE ASSESSEE ON THE SAID ASSETS WAS DISALLOWED BY T HE AO IN THE ASSESSMENT COMPLETED FOR ASSESSMENT YEAR 2001-02 HOLDING THAT THEY WERE PART OF THE ASSETS INCLUDED IN THE SLUMP SALE MADE BY M/S ESSAR PROJEC TS LTD. IT WAS HELD THAT THE SAID TWO MACHINES THUS WERE NOT INDEPENDENT ASSETS SEPAR ATELY PURCHASED BY THE ASSESSEE FROM M/S ESSAR PROJECTS LTD. AND ACCORDING LY THE CLAIM OF THE ASSESSEE FOR DEPRECIATION ON THE SAID TWO MACHINES WAS DISALLOWE D BY THE AO IN ASSESSMENT YEAR 2001-02. FOLLOWING THE SAME, THE CLAIM OF THE ASSESSEE FOR DEPRECIATION ON THE SAID TWO MACHINES WAS DISALLOWED BY THE AO IN THE A SSESSMENT COMPLETED IN THE YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2007- 08 WHICH THE LEARNED CIT(APPEALS) CONFIRMED. AGGRIEVED BY THE ORDER OF T HE LEARNED CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBU NAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS SUBMITTED BY THE LEARNED COU NSEL FOR THE ASSESSEE, THE ISSUE RELATING TO ASSESSEES CLAIM FOR DEPRECIATION ON TH E TWO MACHINES IN QUESTION HAS ALREADY BEEN EXAMINED AND DECIDED BY THE TRIBUNAL W HILE DISPOSING OF THE APPEAL OF THE ASSESSEE FOR ASSESSMENT YEAR 2001-02 VIDE IT S ORDER DATED 4 TH FEBRUARY, 2009 PASSED IN ITA NO. 4688/MUM/2005. COPY OF THE SAID O RDER IS PLACED ON RECORD BEFORE US AND A PERUSAL OF THE SAME SHOWS THAT THE CLAIM OF THE ASSESSEE FOR DEPRECIATION ON TWO MACHINES IN QUESTION HAS BEEN A LLOWED BY THE TRIBUNAL HOLDING THAT THE SAID TWO MACHINES WERE SUBSEQUENTL Y PURCHASED BY THE ASSESSEE SEPARATELY FROM M/S ESSAR PROJECTS LTD. FOR A CONSI DERATION OF ABOUT RS.63 LAKHS AND THE SAME WERE NOT PART AND PARCEL OF THE DIVIS ION OF ESSAR PROJECTS LTD. ACQUIRED BY THE ASSESSEE EARLIER. RESPECTFULLY FOLL OWING THE ORDER OF THE TRIBUNAL 3 ITA NO. 4244/MUM/2011 FOR ASSESSMENT YEAR 2001-02 (SUPRA), WE SET ASIDE T HE IMPUGNED ORDER OF THE LEARNED CIT(APPEALS) AND DIRECT THE AO TO ALLOW THE CLAIM OF THE ASSESSEE FOR DEPRECIATION OF RS.2,23,625/- ON TWO MACHINES SEPAR ATELY PURCHASED BY THE ASSESSEE FROM M/S ESSAR PROJECTS LTD. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON THIS 30 TH DAY OF MARCH, 2012. SD/- SD/- (VIVEK VERMA) ( P.M. JAGTAP) JUDICIAL MEMBER ACCO UNTANT MEMBER MUMBAI, DATED: 30 TH MARCH, 2012. COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, E-BENCH. (TRUE COPY) BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI. WAKODE