ACIT, New Delhi V. M/s Fixopan Machines Pvt. Ltd., New Delhi

ITA 4925/DEL/2010

• Counselvise Citation: 492520114 RSA 2010
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-08-2011
• Assessment Year: 2008-2009
• Appeal Filed On: 10-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALIL MISHRA SENIOR
• Assessee Lawyers: H S AHUJA
• Keywords: Depreciation; Additional depreciation

Judgement Text

BEFORE THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH B, NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.4925/DEL.2010 (ASSESSMENT YEAR : 2008-09) ACIT, CENTRAL CIRCLE 7, VS. M/S. FIXOPAN MACHINES PVT. LTD., NEW DELHI. S 35, GREATER KAILASH, NEW DELHI. (PAN NO.AAACF1367L) (APELLANT) (RESPONDENT) ASSESSEE BY : SHRI H.S. AHUJA, CA DEPARTMENT BY : SHRI SALIL MISHRA, SENIOR DR O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE ARISES OUT OF THE ORDER OF THE CIT (APPEALS)-I, NEW DELHI DATED 31.08.2010 FOR THE ASS ESSMENT YEAR 2008- 08. THE GROUNDS OF APPEAL TAKEN BY THE REVENUE ARE AS UNDER :- 1. THAT THE ORDER OF THE LD. CIT (APPEALS) IS NOT CORRECT IN LAW AND FACTS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS.10,50,093/- MADE BY THE AO ON ACCOUNT OF ADDITIO NAL DEPRECIATION CLAIM BY THE ASSESSEE. 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEN D ANY / ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF THE HEARING OF THE APPEAL. ITA NO.4925/DEL/2010 2 2. THE ASSESSEE COMPANY IS DERIVING INCOME FROM THE BUSINESS OF MANUFACTURING AND TRADING OF ROTOMOLDING, MOULDS AN D CARRYING ON ALLIED ACTIVITIES. IN THE RETURN OF INCOME, ASSESSEE CLAI MED ADDITIONAL DEPRECIATION OF RS.10,50,093/-. THE AO DISALLOWED THIS DEPRECIATION ON THE BASIS THAT ASSESSEE CLAIMED THE DEPRECIATION IN THE RETURN AT RS.41,86,126/- U/S 32 OF THE INCOME-TAX ACT WHEREAS IN THE SCHEDULE OF THE FIXED ASSETS THE AMOUNT SHOWN IS RS.31,36,031/- AND AO HELD THAT AUTHORIZED REPRESENTATION OF THE ASSESSEE COULD NOT EXPLAIN THE SAME, HENCE THE DIFFERENCE WAS DISALLOWED. 3. THE CIT (A) HAS GRANTED THE RELIEF BY HOLDING AS UNDER :- 3.3 I HAVE CAREFULLY CONSIDERED THE SUBMISSION OF THE APPELLANT AND OBSERVATION OF THE AO. THE ASSESSEE HAS SUBMITTED THE REPORT IN FORM NO. 3AA AND OTHER RELE VANT RECORD, VIDE LETTER DATED 18TH OCTOBER 2009. THE AS SESSEE HAS CLAIMED THE DEPRECIATION IN THE RETURN OF INCOM E FILED BY HIM. THE APPELLANT HAD RELIED ON THE FOLLOWING C ASE LAWS :- (A) SHARDA MOTOR INDUSTRIAL LTD V. COMMISSIONER OF INCOME TAX REPORTED IN [2009] 319 ITR 109 (DELHI) (B) (2010) 321 ITR 0481 OF COMMISSIONER OF INCOME TAX V. TEXMO PRECISIAN CASTING (C) (2007) 288 ITR 455 COMMISSIONER OF INCOME TAX VS. STATRONICS AND ENTERPRISES (P) LTD. IN VIEW OF THE DISCUSSION MADE ABOVE THE ADDITION MADE AND RELYING THE CASE LAWS CITED ABOVE THE ADDI TION MADE ON THIS GROUND IS DELETED ITA NO.4925/DEL/2010 3 4. THE SECOND GROUND OF APPEAL IS BECAUSE OF CONSEQUENTIALLY FACTS OF THE 1 ST GROUND OF APPEAL THEREFORE A.O. IS DIRECT TO GIVE THE NECESSARY RELIEF AS PER PROVISION OF INCOME-TAX ACT. 4. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE. THE ASSESSEE CLAIMED THE DEPRECIATION U/S 32(1)(IIA) IN ADDITION TO THE NORMAL DEPRECIATION ON THE NEW PLANT AND MACHINERY. THE INFORMATION WAS S UBMITTED IN FORM NO.3AA. AS PER THE PROVISIONS, THE ASSESSEE WAS EN TITLED FOR A FURTHER SUM OF 20% OF THE ACTUAL COST OF NEW PLANT AND MACH INERY. THERE IS NO FINDING ON THE RECORD WHICH COULD SHOW THAT THE CON DITIONS LAID DOWN IN THE PROVISO TO SECTION 32(1)(IIA) ARE FULFILLED. T HE ASSESSEE HAS CLAIMED THE ADDITIONAL SUM OF DEPRECIATION ON THE NEW PLANT AND MACHINERY AND HAS ALSO SUBMITTED THE REPORT IN FORM NO.3AA IN THI S REGARD. KEEPING THESE FACTS IN VIEW, WE SUSTAIN THE ORDER OF THE CI T (A) AND DISMISS THE REVENUES APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH DAY OF AUGUST, 2011. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : THE 19 TH DAY OF AUGUST, 2011/TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A)-I, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR/ITAT