CHANDULAL SURAJMAL, MUMBAI V. JCIT RG 17(3), MUMBAI

ITA 4582/MUM/2013

• Counselvise Citation: 458219914 RSA 2013
• Duration Of Justice: 1 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-01-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 11-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NEIL PHLIP
• Assessee Lawyers: N R AGARWAL
• Keywords: Depreciation

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./ I.T.A. NO.4582/MUM/2013 ( / ASSESSMENT YEAR :2008-09) M/S CHANDULAL SURAJMAL, BOMBAY COTTON MILL COMPOUND KALACHOWKY ROAD, MUMBAI-400033 / VS. JOINT COMMISSIONER OF INCOME TAX RANGE 17(3), OR CIT CITY 17, 5 TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI. ( / APPELLANT) .. ( ! / RESPONDENT) ./ #$ ./ PAN/GIRNO.:AAAFC0327Q % / ASSESSEE BY : SHRI N R AGARWAL ! & % /RESPONDENT BY : SHRI NEIL PHLIP. ' ( & ) * / DATE OF HEARING : 1.1.2015 +, & ) * /DATE OF PRONOUNCEMENT : 07.1.2015 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 12.3.2013 PASSED BY LD. CIT(A)-16 AND IT RELATES TO THE ASSES SMENT YEAR 2008-09. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD . CIT(A) IN CONFIRMING THE DISALLOWANCE OF DEPRECIATION OF RS.5,32,689/-. 3. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE FROM THE RECORD THAT THE ASSESSEE HAS CLAIMED DEPRECIATION ON WINDM ILL PURCHASED BY IT. DURING THE COURSE OF ASSESSMENT PROCEEDING, THE AO EXAMINE D THE BREAK-UP DETAILS OF WINDMILL COST AND NOTICED THAT THE SAME INCLUDED TH E COST OF LAND OF ITA NO.4582/M/13 2 RS.6,40,000/-. SINCE DEPRECIATION IS NOT ALLOWABLE ON LAND, THE AO DISALLOWED DEPRECIATION CLAIMED BY THE ASSESSEE ON LAND. THE L D. CIT(A) ALSO CONFIRMED THE SAID DISALLOWANCE. 4. AT THE TIME OF HEARING, THE LD.COUNSEL SUBMITTED THAT THE COST OF LAND MENTIONED IN THE BREAK-UP DETAILS ACTUALLY PERTAINS TO CIVIL CONSTRUCTION EXPENDITURE INCURRED TOWARDS FOUNDATION WORK ETC. ACCORDINGLY, HE SUBMITTED THAT THE SAME SHOULD BE CONSIDERED AS COST OF WINDM ILL AND DEPRECIATION SHOULD BE ALLOWED ON IT. HOWEVER, ON PERUSAL OF BREAK-UP DETAILS OF WINDMILL COST GIVEN IN PARA 4 OF THE ASSESSMENT ORDER, WE NOTICE THAT T HE CIVIL CONSTRUCTION COST OF RS.29,17,473/- HAS BEEN SEPARATELY DISCLOSED. WH EN THIS FACT WAS POINTED OUT TO THE LD.COUNSEL, HE COULD GIVE CONVINCING EXPLANA TION, BUT STILL CLAIMED THAT COST OF LAND OF RS.6,40,000/- ALSO PERTAINS TO CIVIL CON STRUCTION WORK ONLY. IT IS PERTINENT TO NOTE THAT HE COULD NOT FURNISH ANY MAT ERIAL TO SUPPORT HIS CLAIM. SINCE, THE COST OF CIVIL CONSTRUCTION IS SEPARATELY DISCLOSED IN THE BREAK UP DETAILS, WE ARE OF THE VIEW THAT THE TAXING AUTHORITIES ARE JUSTIFIED IN HOLDING THAT THE AMOUNT OF RS.6,40,000/- PERTAINS TO COST OF LAND O NLY. SINCE NO DEPRECIATION IS ALLOWABLE ON COST OF LAND, WE ARE OF THE VIEW THAT THE LD CIT(A) WAS JUSTIFIED IN CONFIRMING THE DISALLOWANCE OF DEPRECIATION MADE BY THE ASSESSING OFFICER. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OP EN COURT ON 7TH JAN, 2015 . +, ' - ./ 0 1 7TH JAN, 2015 , & 2( 3 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER . ' ( MUMBAI: 7TH JAN, 2015. . . ./ SRL , SR. PS ITA NO.4582/M/13 3 ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. ' 7) ( ) / THE CIT(A)- CONCERNED 4. ' 7) / CIT CONCERNED 5. 6. 89 2 ): , * : , . ' ( / DR, ITAT, MUMBAI CONCERNED 2 ; < ( / GUARD FILE. = ' / BY ORDER, TRUE COPY > # (ASSTT. REGISTRAR) * : , . ' ( /ITAT, MUMBAI