The DCIT, Circle-4(1)(1), , Ahmedabad V. Shilp Gravures Ltd., Ahmedabad

ITA 489/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5875 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 05-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL WITH SHRI R T SHAH
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, CIRCLE - 4(1)(1), AHMEDABAD (APPELLANT) SHILP GRAVURES LTD. 101, KASHI PAREKH COMPLEX, B/H BHAGWATI CHAMBERS, C.G, ROAD, NAVRANGPURA, AHMEDABAD - 380009, PAN: AADCS0868G (RESPONDENT) REVENUE BY : S H RI PRASOON KA BRA , SR. D . R. ASSESSEE BY: S H RI M.K. PATEL WITH SHRI R.T. SHAH , A.R. DATE OF HEARING : 05 - 02 - 2 018 DATE OF PRONOUNCEMEN T : 23 - 03 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUN TANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2011 - 12 , ARIS ES FROM ORDER OF THE CIT(A) - 8 , AHM EDABAD DATED 03 - 12 - 2014 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE REVENUE HAS RAISED FOLLOWING SUBSTANTIVE G ROUND OF APPEAL: - ' 1. WHETHER THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) IS RIGHT IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE U/S.80 IA OF THE ACT, OF RS.63,89,564/ - .' 3. IN THIS RETURN, RETURN OF INCOME DECLARING INCOME OF RS. 4 , 90 , 57 , 340/ - WAS FILED ON 30 TH SEP, 2011. SUBSEQUENTLY, THE CASE WAS SELECTED BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 26 TH SEP, 2012. THE ASSESSEE COMPANY IS I T A NO . 489 / A HD/20 15 A SSES SME NT YEAR 2011 - 12 I.T.A NO. 489 /AHD/20 15 A.Y. 2011 - 12 PAGE NO DCIT VS. SHILP GRAVURES LTD. 2 ENGAGED IN THE BUSINESS OF ENGRAVING/RE - ENGRAVING OF COPPER PLATED CYLINDERS, SCREENS AND PLATES MANUFACTURE OF GRAVURE PRINTING CYLINDERS INK PROOFING MACHINES AND WEB GUIDING MACHINES TRADING OF MS PIPERS, INK FLOW CONTROL COMPONENTS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, T HE ASSESSING OFFICER HAS NOTICED THAT ASSESSEE CLAIMED DEDUCTION U/S. 8 0IA OF THE ACT OF RS. 63 , 89 , 564/ - . THE INCOME WAS GENERATED TO THE ASSESSEE ON ACCOUNT OF WIND MILL BUSINESS. THE ASSESSING OFFICER HAS DISALLOWED THE CLAIM OF DEDUCTION U/S. 80IA OF THE ACT ON THE GROUND THAT PR OFIT FROM THE ELIGIBLE BUSINESS FOR THE PURPOSE OF DE TERMINATION OF QUANTUM OF DEDUCTION U/S. 80IA HAS TO BE COMPUTED AFTER DEDUCTION O F NOTIONAL BROUGHT FORWARD LOSSES AND DEPRECIATION OF ELIGIBLE BUSINESS WHICH HAVE BEEN SET OF F AGAINST OTHER INCOME IN EARLIER YEAR. CONSEQUENTLY , THE CLAIM OF DEDUCTION OF THE ASSESSEE U/S. 80IA WAS DISALLOWED AND ADDE D TO THE TOTAL INCOME OF THE AS SESSEE. 4. AGGRIEVED ASSESSEE FILED APPEAL BEFORE HE LD. CIT(A). THE LD. CIT(A) HAS ALLOWED THE APPEAL OF THE ASSESSEE BY OBSERVING AS UNDER: - 9. I HAVE CONSIDERED THE FAC TS OF THE CASE AND POSITION OF LAW. THE ISSUE IS COVERED BY THE CIT(APPEALS) IN CASE OF THE OWN CASE OF COMPANY. THE JURISDICTIONAL ITAT HELD IN THE CASE OF SADBHAV ENGINEERING LTD., ITA NUMBER 610/AHD/2008 IN ORDER DATED 19/12/2013 THAT THE OPTION OF INIT IAL ASSESSMENT YEAR IS CULLED OUT IN SUBSECTION (2) OF SECTION 80IA FOR CHOOSING BLOCK OF 10 YEARS OF DEDUCTION OUT OF 15 YEARS. ONLY THE LOSSES AFTER THE INITIAL ASSESSMENT YEAR ARE TO BE BROUGHT FORWARD AS STIPULATED IN SECTION 80IA (5). THE LOSSES PRIOR TO THE INITIAL ASSESSMENT YEAR WHICH HAS ALREADY BEEN SET OFF CANNOT BE BROUGHT FORWARD AND ADJUSTED INTO THE PERIOD OF 10 YEARS FROM THE INITIAL ASSESSMENT YEAR AS CONTEMPLATED OR CHOOSEN BY THE ASSESSEE. CONSIDERING THIS FINDING AND ALSO THE ORDER OF CI T(A)S IN THE EARLIER ASSESSMENT YEARS, THE DEDUCTION OF RS.6389564/ - U/S.801A IS THEREFORE ALLOWED. GROUND NUMBER 1 IS THUS ALLOWED. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. WE HAVE NOTICED THAT T HE CO - ORDINAT E BENCH OF THE ITAT IN THE CASE OF THE ASSESSEE ITSELF FOR ASSESSMENT YEAR 2009 - 10 AND 2010 - 11 HAS DECIDED THE IDENTICAL ISSUE IN FAVOUR OF THE ASSESSEE. RELEVANT PORTION OF THE DECISION OF THE ITAT IN THE CASE OF ITA NO. 2018/AHD/2013 ASSESSMENT YEAR 20 10 - 11 DATED 20 - 06 - 2016 IS RE PRODUCED AS UNDER: - 15. BEFORE THE FIRST APPELLATE AUTHORITY, STRONG RELIANCE WAS PLACED ON THE DECISION OF THE HON BLE MADRAS HIGH COURT IN THE CASE OF VELAYUDDHASWAMY SPINNING MILLS PVT. LTD. 231 CTR 368. AFTER CONSIDERING TH E FACTS AND THE I.T.A NO. 489 /AHD/20 15 A.Y. 2011 - 12 PAGE NO DCIT VS. SHILP GRAVURES LTD. 3 SUBMISSIONS AND ALSO CONSIDERING THE DECISION OF THE HON BLE MADRAS HIGH COURT (SUPRA). THE LD. CIT(A) OBSERVED THAT THIS ISSUE HAD FIRST COME UP IN A.Y. 2009 - 10 WHERE THE CLAIM WAS ALLOWED. FOLLOWING THE PRECEDENCE, THE LD. CIT(A) ALLOWED THE CLAIM OF DEDUCTION. 16. BEFORE US, THE LD. D.R. COULD NOT BRING ANY DISTINGUISHING DECISION IN FAVOUR OF THE REVENUE. LD. COUNSEL FOR THE ASSESSEE RELIED UPON THE FINDINGS OF THE LD. CIT(A). 17. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHOR ITIES BELOW. AN IDENTICAL ISSUE WAS DECIDED BY US IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE IN ASSESSEE S OWN CASE IN ITA NO. 2290/AHD/2012 WHEREIN WE HAVE HELD THAT THE RATIO LAID DOWN BY THE HON BLE MADRAS HIGH COURT IN THE CASE OF VELAYUDDHASWAM Y SPINNING MILLS PVT. LTD (SUPRA) SQUARELY APPLY ON THE FACTS OF THE CASE. RESPECTFULLY FOLLOWING OUR OWN DECISION, WE CONFIRM THE FINDINGS OF THE LD. CIT(A) AND DISMISS GROUND NO. 2. FOLLOWING THE DECISION OF THE COORDINATE BENCH OF THE ITAT ON THE SIMI LAR ISSUE IN THE CASE OF THE ASSESSEE ITSELF AS CITED SUPRA , WE DO NOT FIND ANY REASON TO INTERFERE IN THE DECISION OF THE LEARNED C IT APPEAL , THEREFORE , THE APPEAL OF THE REVENUE IS DISMISSED. 6 . IN THE RESULT , THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 23 - 03 - 201 8 SD/ - SD/ - ( S.S. GODARA ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 23 /03 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,