ACIT CEN CIR 24 &26, MUMBAI V. ARDESHIR B CURSETJEE & SONS LTD, MUMBAI

ITA 5698/MUM/2010

• Counselvise Citation: 569819914 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 14-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARTHSARTHI NAIK
• Keywords: Depreciation; Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA. NO. 5698/MUM/2010 - ASSESSMENT YEAR 2003-2004 ITA. NO. 5699/MUM/2010 - ASSESSMENT YEAR 2004-2005 ITA. NO. 5700/MUM/2010 - ASSESSMENT YEAR 2005-2006 ITA. NO. 5701/MUM/2010 - ASSESSMENT YEAR 2006-2007 THE ACIT, C.C.24 AND 26, MUMBAI. VS. M/S.ARDESHIR B. CURSETJEE & SONS LTD. MUMBAI 400 001 PAN AAACA3292M (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI PARTHSARTHI NAIK FOR RESPONDENT : SHRI HARIOM TULSYAN DATE OF HEARING : 13-10-2011 DATE OF PRONOUNCEMENT : 13-10-2011 ORDER PER B.RAMAKOTAIAH, A.M. 1. THESE FOUR APPEALS BY THE REVENUE ARE FILED ON A COMMON ISSUE OF RATE OF DEPRECIATION TO BE APPLICABLE FOR THE TRACTORS AND TRAILERS FALLING UNDER THE CATEGORY OF MOTOR BUSES, LORRIES AND MOTOR TAXIES. 2. THE ASSESSEE CLAIMED 50% OF THE DEPRECIATION WH EREAS, THE ASSESSING OFFICER FOLLOWING EARLIER ORDERS HELD THAT THE ASSESSEE WAS ENTITLED FOR DEPRECIATION AT 25% ONLY ON TRACTO RS AND TRAILERS. ACCORDINGLY, HE RESTRICTED DEPRECIATION IN ALL THE YEARS. THE LEARNED CIT(A) VIDE ORDERS DATED 16-4-2010 FOR THE ASSESSM ENT YEARS 2003- 2004, 2004-2005, 2005-2006, AND 2006-2007 FOLLOWING THE DECISION TAKEN IN EARLIER YEARS DIRECTED THE ASSESSING OFFIC ER TO ALLOW THE DEPRECIATION AS CLAIMED. HENCE, THE REVENUE IS IN A PPEAL BEFORE US IN ALL THE YEARS ON THE ABOVE ISSUE. 2 3. AT THE OUTSET, IT WAS SUBMITTED THAT THIS ISSUE WAS DECIDED BY THE HONBLE ITAT IN ASSESSMENT YEAR 2002 -2003 WHEREIN FOLLOWING THE ORDERS IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1991-92, THE ORDERS OF THE CIT(A) WERE UPHELD AND R EVENUE APPEALS ARE DISMISSED. IT WAS FURTHER SUBMITTED THAT THE HO NBLE HIGH COURT OF BOMBAY IN ASSESSEES OWN CASE IN ITA.NO.5120 OF 201 0 DATED 21 ST JULY, 2011 FOR THE ASSESSMENT YEAR 2002-2003 UPHELD THE CONTENTION AND DISMISSED THE REVENUES APPEAL AS THE QUESTION OF LAW RAISED WAS ALREADY ANSWERED AGAINST THE REVENUE BY THE DECISIO N OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. S.C.THAKUR & BROS. (2010) 322 ITR 463 (BOM.). IN THE ABOVE REFERRED CASE, THI S ISSUE WAS CONSIDERED AND HELD THAT HIGHER RATE OF DEPRECIATIO N IS ADMISSIBLE WHEN THE MOTOR LORRY IS USED BY THE ASSESSEE IN HIS OWN BUSINESS OF TRANSPORTATION OF GOODS ON HIRE. ACCORDINGLY, AS TH IS ISSUE IS ALREADY CRYSTALLIZED BY THE ORDERS OF THE HONBLE BOMBAY HI GH COURT, THE ISSUE RAISED BY THE REVENUE DOES NOT SURVIVE. THERE FORE, ALL THE APPEALS OF THE REVENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 13-10-2011. SD/- SD/- (D.MANMOHAN) (B.RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI, DATE 13 TH OCTOBER, 2011 VBP/- COPY TO 1. ACIT, CEN. CIR. 24 & 26, ROOM NO.404, 4 TH FLOOR, AAYAKAR BHAVAN, MUMBAI 400 020. 2. M/S.ARDESHIR B. CURSETJEE & SONS LTD., MACKINNO N MACKENZIE BUILDING, BALLARD ESTATE, MUMBAI 400 001 PAN AAACA3292M 3. CIT(A)-39, MUMBAI 4. CIT, CENTRAL-II, MUMBAI 5. DR A BENCH 6. GUARD FILE (TRUE COPY) BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES