ACIT -CC-4(4), MUMBAI , MUMBAI V. PRIME FOCUS LIMITED , MUMBAI

ITA 6133/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7762 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 27-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI , , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER . . . 6133 / /20 19 ( ..20 12 -1 3 ) ITA NO.6133/MUM/2019 (A.Y. 2012-13) ACIT, CC-4(4), ROOM NO. 1922, 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI-400021. ...... / APPELLANT VS. M/S PRIME FOCUS LTD. PRIMA FOCUS HOUSE, OPP. CITYBANK, LINKING ROAD, KHAR (W), MUMBAI-400052. PAN: AAACP6811B ..... / RESPONDENT / APPELLANT BY : MS. SHREEKALA PARDESHI / RESPONDENT BY : NONE / DATE OF HEARING : 05/08/2021 / DATE OF PRONOUNCEMENT : 30/08/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-52, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] DATED 14.06.2019 FOR THE ASSESSMENT YEAR (AY) 2012-13. 2 ITA NO.6133/MUM/2019 (A.Y. 2012-13) 2. THE SOLITARY ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST THE ASSESSEES CLAIM FOR DEPRECIATION AT THE RATE OF 60% ON PLANT & MACHINERY. THE ASSESSEE HAS CLAIMED DEPRECIATION TO THE TUNE OF RS. 18.60 CRORES AT THE RATE OF 60% ON PLANT & MACHINERY (COMPUTER BASED ITEMS). DURING ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (AO) RESTRICTED ASSESSEES CLAIM OF DEPRECIATION ON PLANT & MACHINERY WHICH IS IN THE NATURE OF COMPUTERS TO 15%. THE ASSESSEE CARRIED THE ISSUE IN APPEAL BEFORE THE CIT(A). THE CIT(A) ALLOWED ASSESSEES CLAIM IN FULL BY FOLLOWING THE ORDER OF HIS PREDECESSOR IN AY 2011-12. THE CIT(A) FURTHER OBSERVED THAT THE AO HAS HIMSELF ALLOWED ASSESSEES CLAIM OF DEPRECIATION AT THE RATE OF 60% ON COMPUTER BASE ITEMS IN AY 2014-15. 3. MS. SHREEKALA PARDESHI REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT THE ASSESSEES CLAIM OF DEPRECIATION AT THE RATE OF 60% WAS ALLOWED BY THE CIT(A) IN THE PRECEDING AY AND IN SUCCEEDING AY THE AO HAS ALLOWED THE CLAIM OF DEPRECIATION IN FULL. 4. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF THE AUTHORITIES BELOW EXAMINED. THE ASSESSEE HAS CLAIMED DEPRECIATION AT THE RATE OF 60% ON COMPUTER BASED EQUIPMENT, WHICH WAS RESTRICTED TO 15% BY THE AO. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) HAS ALLOWED THE CLAIM OF ASSESSEE IN FULL AFTER FOLLOWING THE ORDER OF FIRST APPELLATE AUTHORITY FOR AY 2011-12. IT IS FURTHER OBSERVED THAT THE AO HAS HIMSELF ALLOWED ASSESSEES CLAIM OF DEPRECIATION @ 60% ON COMPUTER BASED EQUIPMENT IN AY 2014-15. FROM PERUSAL OF THE IMPUGNED ORDER IT IS GATHERED THAT THE ISSUE IS PERENNIAL. IN AY 2005-06, 2007-08 AND AYS 2009-10 TO 2011-12 THE CIT(A) HAD ALLOWED ASSESSEES SIMILAR CLAIM OF DEPRECIATION ON COMPUTER BASED EQUIPMENTS. IN APPEAL BY THE REVENUE, THE TRIBUNAL CONFIRMED THE ORDER OF FIRST APPELLATE AUTHORITY. 3 ITA NO.6133/MUM/2019 (A.Y. 2012-13) 5. WE FIND NO INFIRMITY IN THE IMPUGNED ORDER, THE SAME IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED, SANS MERIT. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY , THE 30 TH DAY OF AUGUST, 2021. SD/- SD/- ( M. BALAGANESH) (VIKAS AWASTHY) /ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, / DATED: 30/08/2021 SK, PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT , 2. / THE RESPONDENT. 3. ( )/ THE CIT(A)- 4. CIT 5. , . . . , / DR, ITAT, MUMBAI 6. [ / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI