Visteon Automotive Systems India Private Limited, Chengalput V. ACIT, CHENNAI

ITA 619/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8706 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 18-07-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 16-03-2016
• Court: TRIBUNAL
• Department Lawyers: M N MAURYA
• Keywords: Depreciation; Transfer pricing; International transaction; Additional depreciation; Additional evidence; Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , ! ' , # $% BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO. 619/MDS/2016 / ASSESSMENT YEAR : 2011-12 M/S. VISTEON AUTOMOTIVE SYSTEMS INDIA PRIVATE LTD., KEELAKARANAI VILLAGE, MALROSAPURAM POST, MARAIMALAI NAGAR, CHENGALPATTU 603 204. (A PPLICANT) VS THE DEPUTY COMMISSIONER OF INCOME-TAX, CORPORATE CIRCLE 3(2), CHENNAI 600 034. ( /RESPONDENT) PAN AAACM6890R APPLICANT BY : SHRI K.VASUDEVAN, ADVOCATE SHRI S.P. CHIDAMBARAM, ADVOCATE RESPONDENT BY : SHRI M.N.MAURYA, CIT, DR / DATE OF HEARING : 18.07.2016 / DATE OF PRONOUNCEMENT: 22.07.2016 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THE ASSESSEES APPEAL IS DIRECTED AGAINST THE ORDER OF THE ASSESSING OFFICER DATED 29.01.2016 PASSED U/S.143( 3) R.W.S.92CA(3) R.W.S. 144C(5) OF THE ACT, WHICH IS EMANATED FROM DI RECTION OF THE - - ITA NO.619/MDS./16 2 DISPUTE RESOLUTION PANEL (DRP), BENGALURU DATED 22. 12.2015 U/S.143(3) R.W.S 92CA(3) OF THE ACT PERTAINING TO A SSESSMENT YEAR 2011-12. 2. THE FIRST GROUND IN THIS APPEAL FOR OUR CONSIDER ATION IS WITH REGARD TO DRP CONFIRMING THE ADDITION MADE BY THE L D. ASSESSING OFFICER /LD.TRANSFER PRICING OFFICER(TPO) OF ` 20,28,57,853/- TO THE TOTAL INCOME OF ASSESSEE ON ACCOUNT OF ADJUSTMENT I N THE ARMS LENGTH PRICE (ALP) OF THE INTERNATIONAL TRANSACTION IN CONNECTION WITH PAYMENT OF MANAGEMENT AND ADMINISTRATIVE SERVICE FE E (MASF) TO ITS ASSOCIATED ENTERPRISE (AE) AND THEREBY ERRED IN NOT ACCEPTING THE TRANSFER PRICING ANALYSIS UNDERTAKEN BY THE ASSESSE E IN ACCORDANCE WITH PROVISIONS OF THE ACT R.W.INCOME TAX RULES, 1962 . 3. THE ASSESSEE PAID A SUM OF ` 20,28,57,853/- TOWARDS MANAGEMENT AND ADMINISTRATIVE SERVICE FEE TO AE. A CCORDING TO TPO, ASSESSEE FAILED TO SUBSTANTIATE ITS CLAIM AND C OULD NOT PRODUCE NECESSARY EVIDENCE IN SUPPORT OF THESE PAYMENTS. TH E POSITION BEFORE THE DRP IS ALSO SAME. ACCORDINGLY, DRP CONFIRMED T HE ORDER OF TPO. 4. BEFORE US, LD.A.R FILED VOLUMINOUS ADDITIONAL EVIDENCES/DOCUMENTS AT APPENDIX NOS.1 TO 31 REPROD UCED BELOW ALONG WITH ASSESSEES LETTER DATED NIL RECEIVED IN THIS OFFICE ON - - ITA NO.619/MDS./16 3 09.06.2016 WHICH ARE NOT PRODUCED BEFORE THE LOWER A UTHORITIES AND ALSO FILED PETITION FOR ADMISSION OF ADDITIONAL EVI DENCE. APPENDIX NO.1 COMMUNICATION BETWEEN THE CORPORATE TREASURY TEAM , ASIA PACIFIC AND VASI WHEREIN, THE CORPORATE TREASURY EA M PROVIDED OPINION/INFORMATION ABOUT THE PREVAILING SITUATION IN THE GLOBAL MONEY MARKET, DISLOCATIONS AISED FROM EU AND HOW IT COULD AFFECT VASIS CASH OPERATIONS, TYPE AND PERIOD OF INVESTMENT TO BE MADE SO AS TO PROVID E BETTER RETURNS WITH LOWER RISKS. APPENDIX NO.2 VISTEON CORP SHARED THE CASH TEMPLATE UPDATED ON 15-10-2010 (I.E.THE MOST CURRENT MASTER TEMPLATE ) WITH YAP, T O BE USED BY THE MANAGERS OF GROUP ENTITIES, FOR PREPARING MONTHLY CASH BALANCE SUBMISSIONS. THE EMAIL ALSO MENTIONED THAT MONTHLY CASH BALANCE FOR NOVEMEBER M ONTH HAD TO BE SUBMITTED BY 06-12-2010. THE MOST RECENT DEPOSIT TYPE REFERENCE LIST WAS SHARED IN THE SAME MAIL. VISTEON CORP ALSO PROVIDED GUIDELINES, FOR PR EPARING THE MONTHLY CASH BALANCE, WHICH ARE AS FOLLOWS: A. NOT TO ABBREVIATE THE BANK NAMES, RATHER TO USE THEM FROM DROP DOWN MENU , AS IT CAUSES THE FORMULA IN THE MASTER SPREADSHEET TO FAI L. B. BANK ACCOUNT NUMBERS ARE REQUIRED. C. TO USE THE DEPOSIT TYPE LISTED. D. PETTY CASH ONLY TO BE USED WHEN CASH IS ACTUALLY IN THE OFFICE, ETC. APPENDIX NO.3 VAP SHARED THE HEDGING STRATEGY FOR INDIA FOR THE YEAR 2011 WITH VASI ASKING VASI FOR ITS COMMENTS ON THE SAME. THE HEDGING STRAGEY IS AS FOLLOWS:. A. CSLL - HEDGE 65% OF THE UDS EXPOSURE IN A SINGLE TRANCHE. B. VASI- LAYERING APPROACH (LIMITED TO NET INR/ USD CORPORATE EXPOSURE) VAP ALSO MADE A COMPARISON BETWEEN THE EXPOSURE THA T VASI HAD SNT EARLIER AND THE EXPOSURE ACCORDING TO THE FORECASTING SYSTEM AN D COMMENTED THE FOLLOWING: I. THERE ARE NO ISSUES WITH VASI. II. CERTAIN QUESTIONS REGARDING CSI1.., VTSC & VAIP L, WHICH VASI NEEDS TO ANSWER. III. PROVIDE EXPLAINATION ON THE YEAR ON YEAR VARIA NCES FOR VASI, CSIL, VAIL & VTSC. APPENDIX NO.4 COMMUNICATION BETWEEN VASI AND VISTEON CORP. WHER EIN VASI HAS SENT A PRESENTATION FOR REVIEW BY VISTEON CORP, WHICH HIGHLIGHTS THE GLOBAL EVENTS ORGANISED BY THE GLOBAL CUSTOMER GROUP TEAM FOR INDIA CUSTOMERS. THE PRESENTATION ALSO HIGHLIGHTS THE GLOBAL TECHNICAL T EAM PARTICIPATES IN EVENTS FOR EXPLAINING TECHNOLOGY TO INDIAN CUSTOMERS. IT ALSO POTRAYS THE GLOBAL QUALITY TEAM SUPPORT AND PD SUPPORT PROVIDED TO VASI. APPENDIX NO.5 VAP COLLECTED INFORMATION FROM VASI FOR PENDING S IGNIFICANT LITIGATION /CLAIM/ DISPUTE (I.E. DISPUTE AMOUNT CEE DING $1,00,000) TO PROVIDE GUIDANCE/MAKE STRATEGIES IN RELATION TO VASIS LEGA L ISSUES. APPENDIX NO.6 COMMUNICATION BETWEEN VISTEON CORPS IT TEAM AND VASI WHEREIN VASI HAS SOUGHT CLARIFICATIONS AND ASISTANC E WITH REGARD TO ANALYSING C1AD CORE MODEL , CMMS AND I & 0 ANALYSIS FOR VASI - - ITA NO.619/MDS./16 4 APPENDIX NO.7 COMMUNICATION BETWEEN VASI ASKING VAP FOR ASSISTA NCE IN IMPLEMENTING QAD (NEW COSTING METHOD) AND EKING CLA RIFICATIONS ON CORPORATE GUIDELINES AVAILABLE (IF ANY) , POS AND CONS OF OLD AND NEW COSTING METHODS, COMPLEXITIES FACED INVOLVED, ALIGNMENT REQUIRED TO MEET THE INPUTS FOR THE OTHER APPLICATIONS, ETC APPENDIX NO.8 HALLA CLIMATE CONTROL CORP(HCC) COLLECTED DOCUMEN TS (LIKE INVENTORY AGEING REPORT, INVENTORY OBSOLESCENCE DET AILS, SAMPLE NEGATIVE INVENTORY DATA , CONSIGNMENT RECONCILIATION SIGN OFF SHEET )F ROM VASI TO REPORT ON THE VIEW OF THE KEY INTERNAL CONTROL ISSUES AND PROVIDE AN ACTI ON PLAN. APPENDIX NO.9 VISTEON EUROPES BUSINESS DEVELOPMENT AND SUPPORT TEAM (EUROPEAN ACCOUNTING CENTRE (EAC) HUNGARY) SISTED V ASI IN PROVIDING ACCESS FOR SCREENS AND UTILISATION OF THE SAP SYSTEM FOR VAST EMPLOYEES. APPENDIX NO.10 COMMUNICATION BETWEEN VISTEON GLOBAL SERVICE DESK( VGSD) AND VAST WHEREIN VGSD HAS PROVIDED DELINES/INSTRUCT IONS TO HELP VASI EMPLOYEES WITH USER PASSWORD RESETTING ISSUES. APPENDIX NO.11 COMMUNICATION BETWEEN VISTEON CORPS GLOBAL IT OPE RATIONS DEPARTMENT AND VAST, INFORMING VASI ABOUT THE NETWO RK OUTAGE TO THE U. S. EXCHANGE SERVER ENVIRONMENT AFFECTING EMAIL IN AMER ICA AND ASIA PACIFIC REGION. IT S INFORMED THAT VISTEON GLOBAL IT TEAM WAS WORKING ON RETRIEVING THE EMAILS ISSUED DURING THE OUTAGE AND WOULD ASSIST VAST IN ANY ASS ISTANCE REQUIRED THEREIN. APPENDIX NO.12 COMUNICATION FROM THE VISTEON GLOBAL IT TEAM PROVI DING AN UPDATE ON THE RESTORATION OF LAN CONNECTION IN C PL ANT AND CONDUCTING LOG ANALYSIS TO DETERMINE ROOT CAUSE OF THE PROBLEM. FURTHER, IT WAS MENTIONED THAT TEAM WOULD PROVIDE ASSISTANCE AND IT SUPPORT TO VAST BY RESTOR ING EMAILS AND QAD APPLICATION ACCESS TO I. THE GLOBAL IT TEAM HAD LODGED COMPLAIN T WITH THE LOCAL TELECOM AUTHORITY (BSNL) TO CHECK THE WA LITS. ADDITIONALLY , WITH REGARD TO THE SPECTRUM SERVICE INACCESSIBILIT, IT WAS INFORMED THAT THE SU PPORT I WOULD REVIEW THE LOGS AND MNITOR THE APPLICATIONS TO DETERMINE THE ROOT CAUS E OF THE SAME. APPENDIX NO.10 SUPPORT RECEIVED FROM AZALEOS CORPORATION (THIRD PARTY IT SERVICE PROVIDER) AND VISTEON CORPS GLOBAL IT RTME NT IN ASSOCIATION WITH THE LOCAL IT TEAM WHICH HELPED VAST IN RESOLVING ISSUES WITH MICROSOFT OUTLOOK. APPENDIX NO.14 THE INDIRECT PURCHASING DEPARTMENT OF GLOBAL SHARE D SERVICES PROVIDED REPORTS CONTAINING MARKET PRICE TAKEN FROM OFFICIAL BOARD MARKET FOR DIFFERENT TYPES OF PACKAGING PAPER AND CARRIED OUT ANALYSIS TO DEVELOP A COMMODITY STRATEGY TO BUILD A STRONG SUPPLY BASE IN FUTURE, C ONSIDERING SOURCE OF INFORMATION FOR THE MARKET PRICES, WHETHER NEGOTIATION IS POSSI BLE,ETC. APPENDIX NO.15 COMMUNICATION BETWEEN VASI, VISTEON CORP AND THE S UPPLIER WITH REGARD TO P5W DOCUMENT REQUIREMENTS APPENDIX NO.16 COMMUNICATION FROM VISTEON CORPS CENTRAL DISTRIBU TION SUPERVISOR (KAREN L. SCHERER) TO VASI PROVIDING INS TRUCTIONS ON THE PROCESS OF CREATION OF PROFILE TO BE USED IN MM SCHEDULING AGR EEMENTS. APPENDIX NO.17 ASSISTANCE PROVIDED BY VISTEON CORP TO VASI IN GAT HERING A DETAILED LIST OF ALL EXPENDABLE PACKAGING ITEMS PUR CHASED AT THE PLANT BY VASI ALONG WITH THE DRAWINGS RECEIVED FROM SUPPLIERS AND HELPED IN BUILDING AND POPULATING A DATABASE, WHICH WOULD BE USED BY VASI. - - ITA NO.619/MDS./16 5 APPENDIX NO.18 COMMUNICATION BETWEEN VISTEON LEGAL TEAM - ASIA PA CIFIC REGION AND VASI WITH REGARD TO THE REVIEW AND EVALU ATION OF VASIS VENDOR/SUPPLIER AGREEMENT WITH M&M FOR W408 PROGRAM FOR INTERIOR PARTS. THE VISTEON CORPS REGIONAL ASIA PAC TEAM WOULD PROVIDE GUIDANCE/SUGGESTIONS AND HELP IN IDENTIFYING THE SPECIFIC CLAUSES WHICH NEED ED TO BE NEGOTIATED WITH THE CUSTOMERS. APPENDIX NO.19 INVITATION FROM VISTEON ENGINEERING SERVICE LTD.,U K TO ATTEND A TRAINING SESSION BEING ORGANISED BY THEM WITH REGAR D TO THE SUPPLIER FINANCIAL HEALTH ASSESSMENT PROCESS. APPENDIX NO.20 COMMUNICATION FROM VISTEON GLOBAL SHARED SERVICES OPERATION CENTRE PROVIDING VASI THE LATEST CONSOLIDATION OF C USTOMER DOWNTIME SCHEDULED. THE INFORMATION TO BE REFLECTED IN CUSTOMER RELEASE THAT THE PLANTS RECIEVES AND WOULD HELP WHILE MAKING DECISIONS ON VISTEON PLANT OPERATING PATTERS, SAFETY STOCK REQUIREMENTS AND INVENTORY LEVEL. APPENDIX NO.21 EMAIL COMMUNICATION INFORMING VASI ABOUT AN INTERN AL CUSTOMER VISIT FROM VASI CHENNAI WHICH WOULD BE ATTENDED BY MR. G.CHONG, DIRECTOR, PURCHASE (GLOBAL MPL TEAM) ON AUG 25TH, 2010 AT 3.0 0 PM. THE AGENDA OF THE MEETING WOULD BE TO REVIEW THE AP PROCESS-GO LIVE P REPAREDNESS FOR VASI. APPENDIX NO.22 COMMUNICATION FROM VISTEON CORPS MPL TEAM TO VASI INFORMING ABOUT THE ASSIGNING OF ADDITIONAL (HIGHER ) RESPONSIBILITIES TO MR.NIRANJANI AND CONVEYING THAT MR. DAN AND MR. PATIENCE (OF VIS TEON CORP) WOULD CONTINUE TO SERVE AS CN APPROVER AND WOULD PROVIDE SUPPORT DIRE CTLY FOR INDIA. APPENDIX NO.23 COMMUNICATION FROM VISTEON CORPS MPL DEPARTMENT I NFORMING VASI THAT DUE TO THE LARGE INCREASE IN FASTENER ISS UES FROM VISTEON PLANTS IN INDIA, VISTEON CORPS MPL TEAM WOULD TAKE THE LEAD AND PRO VIDE SUPPORT ON ALL VISTEON INDIA FASTENER RELATED ISSUES (STARTING IN JANUARY 2011). THIS WOULD HELP IN IMPROVING CUSTOMER SERVICE. VISTEON CORPS TEAM WOU LD ALSO BE TRAINING VASI ENGINEERS ON FASTENER SEARCHES, STANDARD PART REQUE STS, FASTENER DRAWINGS, ETC. APPENDIX NO.24 VISTEON CORPS MPL TEAM PROVIDED VASI THE E/O PAR TS RECEIVED FROM OTHER VISTEON FACILITIES THAT COULD BE USED R VASI FACILITY. THIS WOULD HELP VASI TO REDUCE THE EXCESS INVENTORY AT VISTEON FACI LITY AND BRING IN A POTENTIAL ST SAVE. APPENDIX NO.25 COMMUNICATION FROM VISTEON CORPS MPL TEAM INFORMI NG ABOUT THE SUPPLIER REGISTRATIONS ON STERLING HLEBFORMS. O N RECEIVING THE REGISTRATIONS FROM VAST, VISTEON CORPS MPL TEAM WOULD PROVIDE SUPPORT TO VASI SETTING UP THE EDT ENVELOPES IN GIS. APPENDIX NO.26 COMMUNICATIONS FROM VISTEON CORPS MPL TEAM TO VAS T DISCUSSING ABOUT THE SUPPORT PROVIDED AND GUIDANCE N PERFORMANCE TRACKER 2011, OFFSITE PREPARATIONS AND SUPPORT FOR BUSINESS CATAL OG. APPENDIX NO.27 PHOTOGRAPHS OF THE BIG TECH SHOW IN 2010-11, IN CO NDUCTING WHICH VISTEON CORPS COMMUNICATIONS TEAM ROVIDED SU PPORT AND THE ENTIRE GLOBAL COMMUNICATIONS TEAM VISITED INDIA: 1) IMAGE OF GLOBAL LEADERS VISIT TO VAST, 2011 2,)LMAGE OF GLOBAL LEADERS WITH TATA ENGINEERING HE AD AT TECH SHOW, 2011 3 )LMAGE OF LEADERS AT TATA TECH SHOW, 2011 4) IMAGE OF RESIZE LEADERSHIP VISIT VECI BY JULIE - - ITA NO.619/MDS./16 6 PHOTOGRAPHS OF APAC SUPPLIER CONFERENCE HELD IN CHE NNAI IN 2011 SUPPORTED BY THE REGIONAL AND GLOBAL COMMUNICATIONS TEAM: 1) PHOTOS OF AP COMMUNICATIONS HEAD WITH VISTEON LE ADERS AT MAHINDRA TECH SHOW 2011. PESENTATIONS OF EMPLOYEE MEETINGS CONDUCTED BY THE GLOBAL COMMUNICATIONS TEAM: -PRESENTATION OF ALL EMPLOYEE MEETING INDIA CONDUCT ED BY MR. DON STEBBINS IN MARCH, 2010 APPENDIX NO.28 NAMES OF ATTENDEES OF THE INDIA TECH SHOW HICH IN CLUDES MS.IOY GREENWAYS (CPG-VP) NAME. THE ATTENDEES D VISITED V ASI TO OVERSEE AND MANAGE VASTS OPERATIONS LIST OF STAFF MEMBERS ATTENDING THE INDIA TECH SHOW APPENDIX NO.29 EMAIL COMMUNICATION FROM VISTEON REGIONAL OFFICE ( SHANGHAI) INFORMING VAST THAT ITS PERSONNEL MR. NIGEL :IMER ( SENIOR DIRECTOR - FORD ASIA PACIFIC CUSTOMER GROUP) WOULD BE VISITING VASI TO S UPPORT AND PROVIDE IDANCE ON FIGO OCE, SERVICE SUPPORT, REVIEW OF FIGO QUALITY S TATUS AND FIGO COST BREAKDOWN. APPENDIX NO.30 EMAIL COMMUNICATION FROM VISTEON CORPORATION INFOR MING VAST THAT ITS PERSONNEL [MR. JASON(JONG-SYE) KIMI, ULD B E VISITING VASI TO SUPPORT TECH SHOW FOR HYUNDAI. APPENDIX NO.31 EM AIL COMMUNICATION FROM VISTEON CORPORATION INFORMIN G VAST THAT ITS PERSONNEL [MR. GORDON THORNS - PLIER QUALI TY ASSURANCE ENGINEER], WOULD BE VISITING VAST TO PROVIDE SUPPORT AND GUIDANCE ON MONOZUKURI IITY FOR COMBIMETER ASSEMBLY PROCESS AND UNDERSTANDING THE A CTIONS WHICH HAVE TAKEN PLACE AT PCB PROESS. 5. WE HAVE GONE THROUGH PETITION FILED BY THE ASSE SSEE AND FIND THAT REASONS ADVANCED BY THE ASSESSEE NOT PRODUCING THE SAME BEFORE THE LOWER AUTHORITIES IS JUSTIFIED AND FIND T HAT THE ASSESSEE IS HAVING REASONABLE CAUSE FOR NOT PRODUCING THE BEFOR E THE LOWER AUTHORITIES. ACCORDINGLY, THESE ADDITIONAL EVIDENC ES ARE ADMITTED FOR ADJUDICATION AND IN THE INTEREST OF JUSTICE, WE ARE OF THE OPINION THAT IT IS APPROPRIATE TO REMIT THE ISSUE TO THE FILE OF TH E AO FOR EXAMINING - - ITA NO.619/MDS./16 7 THE ISSUE AFRESH IN THE LIGHT OF ABOVE ADDITIONAL E VIDENCES AFTER GIVING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. 6. THE NEXT GROUND IN THIS APPEAL IS WITH REGARD TO DISALLOWANCE OF ADDITIONAL DEPRECIATION CLAIMING U/S.32(1)(IIA) OF THE ACT. 7. THE FACTS OF THE ISSUE ARE THAT THE ASSET HAS NO T BEEN PUT TO USE IN THE PREVIOUS YEAR IN WHICH IT WAS ACQUIRED BUT ON 1 ST APRIL 2010 I.E. THE SUCCEEDING PREVIOUS YEAR. SO IN SUCH CIRC UMSTANCES ASSET REMAINED NEW IN THE SUCCEEDING PREVIOUS YEAR AND WOU LD BE ELIGIBLE FOR ADDITIONAL DEPRECIATION. THE REQUIREMENT OF THE SECTION IS NOT THAT THE ACQUIRING AND INSTALLATION SHOULD BE IN THE SAM E PREVIOUS YEAR. THE ONLY REQUIREMENT IS THAT ACQUIRING AND INSTALLAT ION SHOULD BE AFTER 31ST DAY OF MARCH, 2005. THIS CONDITION IS SATISFIED IN THIS CASE. SO NOW WHAT IS REQUIRED IS TO BE VERIFIED IS AS TO WHEN THE ASSET WAS PUT TO USE BY THE ASSESSEE, I.E. IN FY 2009-10 OR FY 20 10-11. THE ASSESSEE WAS ASKED TO PRODUCE THE DETAILS REGARDING PURCHASE INVOICES, INSTALLATION REPORTS OF VARIOUS PLANTS AN D MACHINERY SO AS TO ASCERTAIN THIS ASPECT OF PUT TO USE, HOWEVER ASSE SSEE EXPRESSED ITS INABILITY TO PRODUCE THE SAME IN SHORT PERIOD DUE T O BAD WEATHER CONDITIONS IN CHENNAI. CONSIDERING PRACTICAL DIFFIC ULTY, THE DRP DIRECTED THE AO TO VERIFY THIS ASPECT FROM THE ABOV E DOCUMENTS PRODUCED BY THE ASSESSEE BEFORE DRP WITH FOLLOWING OB SERVATIONS. - - ITA NO.619/MDS./16 8 A) IN CASE OF SUCH PLANTS AND MACHINERY WHICH DO NO T REQUIRE ANY SPECIFIC INSTALLATION AND ARE READY TO USE E.G. DIE S, JIGS, TOOLS AND EQUIPMENTS ETC THE SAME NEED TO BE CONSIDERED TO HA VE BEEN PUT TO USE AS SOON AS THE SAME ARE DELIVERED IN THE PREMISES OF THE ASSESSEE. SO NO ADDITIONAL DEPRECIATION WOULD BE AVAILABLE FOR THE SAME IN A.Y 2011-12 IN VIEW OF THE DECISION OF JURISDICTION ITAT(SUPRA). B) FOR SUCH PLANT AND MACHINERY, WHICH WERE INSTALLE D DURING FY 2009- 10 AND TRIAL RUN WAS CARRIED OUT, AGAIN THE SA ME NEED TO BE TREATED AS HAVING BEEN PUT TO USE AND WILL NOT BE ELIGIBLE FOR ADDITIONAL DEPRECIATION IN AY 2011-12. C) ONLY SUCH PLANT AND MACHINERY, FOR WHICH ACTUAL INSTALLATION WAS ON 1ST APRIL 2010 (AS ASSESSEE HAS CLAIMED THAT THE SAME WERE PUT TO USE ON THE SAID DATE, SO INSTALLATION CANNOT BE BEYOND THIS DATE) AND ASSESSEE PRODUCES EVIDENCE OF SUCH INSTAL LATION ON THE SAID DATE THE CLAIM OF THE ASSESSEE FOR ADDITIONAL DEPRECIATION NEEDS TO BE ALLOWED. D) IN CASE THE ASSESSEE FALLS TO ADDUCE EVIDENCE, T HEN IN RESPECT OF SUCH PLANT AND MACHINERY ADDITIONAL DEPRECIATION SH OULD NOT BE ALLOWED. HENCE, DRP DIRECTED THE AO TO WORK OUT ADDIT IONAL DEPRECIATION ACCORDINGLY. CONSEQUENT TO THIS, THE AO PASSED THE FINAL ORDER. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. WE HAVE GONE THROUGH THE FINDINGS OF THE DR P. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE DRP WHEREIN T HE ISSUE WAS - - ITA NO.619/MDS./16 9 REMITTED TO THE FILE OF AO FOR CONSIDERATION WITH A DIRECTION TO SEE THE EVIDENCE WHETHER THE PLANT AND MACHINERY WAS INSTALLE D ON THE DATE OF FIRST APRIL, 2010 AND ALLOW THE ADDITIONAL DEPREC IATION IN ACCORDANCE WITH LAW. THE SAME IS CONFIRMED. THIS GRO UND IS REJECTED. 9. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, THE 22 ND OF JULY, 2016 AT CHENNAI. SD/- SD/- ( . . . ) ( ! ' # $ ) ( N.R.S.GANESAN ) (CHANDRA POOJARI) 1 23 /JUDICIAL MEMBER 4 23 /ACCOUNTANT MEMBER 1 /CHENNAI, >2 /DATED, THE 22 ND JULY, 2016. K S SUNDARAM 2 ?4@' AB@ /COPY TO: A'C4 /APPELLANT / /RESPONDENT / D ( A'C4 ) /CIT(A) / D /CIT / @EC F /DR G H4 /GF.