ACIT, Jaipur V. ANAMIKA CONDUCTORS LTD., Jaipur

ITA 616/JPR/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5579 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 10-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: G M MEHTA CA DHK
• Keywords: Depreciation

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE:SHRI T.R. MEENA,AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA-@ ITA NO. 616/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ACIT CIRCLE- 6 JAIPUR CUKE VS. M/S. ANAMIKA CONDUCTORS LTD. B-129, RAJENDRA MARG, BAPU NAGAR JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AABCA 5681 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA, ADDL. CIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI G.M. MEHTA , CA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 01 /01/2016 VKNS'K@ ORDER PER T.R. MEENA, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 15-03-2013 FOR THE ASSESSME NT YEARS 2008-09 RAISING THEREIN SOLITARY GROUND AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING ADDITIO N MADE BY AO BY WAY OF DISALLOWANCE OF DEPRECIATION CLAIMED O N WIND MILL FOR RS. 31,22,897/- HOLDING THAT DEPRECIATION @ 80% HAS TO BE ALLOWED ON COMPLETE WIND MIL WITHOUT SEGREGAT ING INVESTMENT ON BUILDING PART AND ON ELECTRIC ITEM WI THOUT APPRECIATING THAT DEPRECIATION @ 80% IS ALLOWABLE O NLY ON ITA NO. 616//JP/2013 ACIT, CIRCLE- 6, JAIPUR VS. M/S. ANAMIKA CONDUCTORS LTD. JAIPUR . 2 WIND MILL PLANT NOT ON THE OTHER ELECTRICAL FITTING S AND BUILDING ETC. 2.1 BRIEF FACTS OF THIS GROUND ARE THAT THE ASSESSE E IS ENGAGED IN MANUFACTURING OF ACSR, CONDUCTORS AND WIRES. THE AS SESSEE HAS ESTABLISHED TWO WIND MILLS AT VILLAGE BARMER IN JAI SALMER DISTT AND AT VILLAGE KUNDALPUR IN SANGLI DISTT. (MAHARASHTRA). DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS SHOWN THE GROSS PRO FIT OF RS. 6,11,25,895/- ON TURNOVER OF RS. 1,07,00,17,437/- YIELDING A GRO SS PROFIT RATE OF 5.71%. THE AO OBSERVED THAT THE ASSESSEE COMPANY HAS CLAIM ED DEPRECIATION OF RS. 4,06,49,046 ON WIND POWER PLANTS IN THE ASSESSM ENT YEAR 2008-09 WHEREAS AS PER AO THE ALLOWABLE EXPENSES SHALL BE T O THE TUNE OF RS. 3,75,26,149/-. THEREFORE, THE EXCESS DEPRECIATION C LAIMED OF RS. 31,22,897/- WAS DISALLOWED BY THE AO AND ADDED BACK IN THE INCOME RETURNED BY THE ASSESSEE COMPANY. 2.2 AGGRIEVED, THE ASSESSEE PREFERRED FIRST APPEAL BEFORE THE LD. CIT(A) WHO ALLOWED THIS GROUND OF APPEAL OF THE ASSESSEE B Y OBSERVING AS UNDER:- I HAVE CONSIDERED THE FACTS OF THE CASE AND THE SUBMISSIONS MADE. I FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE APPELLANT BY THE ORDERS OF MY PREDECESSORS A ND HON'BLE TRIBUNAL FOR EARLIER YEAR I.E. A.Y. 2005-0 6. THE OBSERVATION OF THE HON'BLE ITAT IN ITS ORDER ITA NO. 852/JP/2009 DATED 31-03-2010 IN PARA 6 ARE REPRODUC ED AS UNDER:- 6. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE RECORD, WE FIND THAT SUCH ISSUE HAS ITA NO. 616//JP/2013 ACIT, CIRCLE- 6, JAIPUR VS. M/S. ANAMIKA CONDUCTORS LTD. JAIPUR . 3 ALREADY BEEN DECIDED BY THIS BENCH VIDE ITS ORDER DATED 18-07-2008 IN THE CROSS APPEAL IN I.T.A. NO.745/JP/07 - VIJAY INDUSTRIES VS. I.T.O. AND IN I.T.A. NO.731/JP/07 ACIT VS. M/S. VIJAY INDUSTRIE S FOR THE ASSESSMENT YEAR 2003-04. THE LD. CIT(A) HAS FOLLOWED THE ORDER OF THIS BENCH IN THE CASE OF VIJ AY INDUSTRIES, SUPRA WHEREIN FACTS OF THE CASE ARE IDENTICAL TO THE FACTS OF THE PRESENT CASE AND WE F IND NO INFIRMITY IN THE ORDER OF THE LD.CIT(A). THUS GROUND NO. 1 AND 2 OF THE REVENUE ARE DISMISSED THERE IS NO MATERIAL CHANGE IN THE FACTS AND CIRCUMSTANCES DURING THE YEAR AS COMPARED TO THE PR ECEDING YEAR. RESPECTFULLY FOLLOWING THE DECISION OF HON'BL E ITAT IN THE CASE OF THE APPELLANT FOR EARLIER YEAR I.E. A.Y. 2005-06, I DIRECT THE AO TO ALLOW DEPRECIATION AT THE APPLIC ATION RATE OF 80% ON CIVIL CONSTRUCTION AND ELECTRICAL FITTING ATTACHED WITH WIND MILL. THE DISALLOWANCE OF DEPRECIATION OF RS. 11,55,436/- IS NOT SUSTAINABLE AND DIRECTED TO BE D ELETED. THIS GROUND OF APPEAL IS ALLOWED. 2.3 DURING THE COURSE OF HEARING, THE LD. DR RELIED ON THE ORDER OF THE AO. 2.4 TO THIS EFFECT, THE LD. AR OF THE ASSESSEE RELI ED ON THE ORDER OF THE LD. CIT(A) BESIDES THE ORDERS OF THE COORDINATE BE NCH IN THE CASE OF ACIT VS. M/S. ANAMIKA CONDUCTORS LTD. (ITA NO. 852/ JP/2009 DATED 31- 03-2010 FOR THE ASSESSMENT YEAR 2005-06) AND DCIT V S. M/S. ANAMIKA CONDUCTORS LTD. (ITA NO. 1021/JP/2011 DATED 15-03-2 012 FOR THE ASSESSMENT YEAR 2007-08) PRAYING THEREIN TO DISMISS THE APPEAL OF THE REVENUE. ITA NO. 616//JP/2013 ACIT, CIRCLE- 6, JAIPUR VS. M/S. ANAMIKA CONDUCTORS LTD. JAIPUR . 4 2.5 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT EMERGES FROM THE RECORD THA T THE LD. CIT(A) HAS TAKEN INTO CONSIDERATION ALL THE ASPECTS IN DELETIN G THE ADDITION MADE BY AO BY WAY OF DISALLOWANCE OF DEPRECIATION CLAIMED O N WIND MILL FOR RS. 31,22,897/-. THUS RESPECTFULLY FOLLOWING THE DECISI ONS OF THE COORDINATE BENCH IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEA R 2005-06 AND 2006- 07(SUPRA), WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A). THEREFORE, THE SOLITARY GROUND OF THE REVENUE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1/01/201 6. SD/- SD/- (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 01 /01/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE- 6, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S. ANAMIKA CONDUCTORS LTD., JAIP UR 3. VK;DJ VK;QDRVIHY ) @ CIT(A), JAIPUR 3. VK;DJ VK;QDR@ CIT, JAIPUR 4. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 5. XKMZ QKBZY@ GUARD FILE (ITA NO.616/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR