DCIT 3(2)(1), MUMBAI V. MODISON METALS LTD, MUMBAI

ITA 6229/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6069 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 12-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SATISH MOTI
• Keywords: Depreciation; Additional depreciation
• Section: 32(1)(iia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI BEFORE SHRI M. BALAGANESH , AM & SHRI AMARJIT SINGH , JM ITA NO. 6229 / MUM/20 1 7 ( ASSESSMENT YEAR : 2013 - 14 ) DY. COMMISSIONER OF INCOME - TAX 3(2)(1) ROOM NO.608, AAYAKAR BHAVAN, M.K.ROAD CHURCHG ATE, MUMBAI 400 020 VS. M/S. MODISON METALS LTD., 33, NARIMAN BHAVAN, 227, NARIMAN POINT MUMBAI 400 021 PAN/GIR NO. AAACA3768N ( APPELLANT ) .. ( RESPONDENT ) ITA NO. 6230 /MUM/20 17 ( ASSESSMENT YEAR : 2014 - 15 ) DY. COMMISSIONER OF INCOME - TAX 3(2)(1) ROOM NO.608, AAYAKAR BHAVAN, M.K.ROAD CHURCHGATE, MUMBAI 400 020 VS. M/S. MODISON COPPER PVT. LTD., 33, NARIMAN BHAVAN, 227, NARIMAN POINT MUMBAI 400 021 PAN/GIR NO. AAACA3768N ( APPELLANT ) .. ( RESPONDENT ) REVENUE BY MS. RIDDHI MISHRA ASSESSEE BY SHRI SATISH MOTI DATE OF HEARING 22 / 01 /201 9 DATE OF PRONOUNCEMENT 23 / 01 /201 9 / O R D E R PER M. BALAGANESH (A.M) : THESE ARE THE APPEALS FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 8 (IN SHORT CIT(A)), ITA NO. 6229/MUM/2017 M/S. MODISON METALS LTD., 2 MUMBAI DATED 27/07/2017 FOR A.Y.2013 - 14 & 2014 - 15 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961. AS THE ISSUES INVOLVED IN BOTH THE APPEALS ARE IDENTICAL, THE SAME ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY COMMON ISSUE INVOLVED IN THESE APPEALS IS THAT WHETHER THE ASSESSEE IS ENTITLED FOR REMAINING 50% OF ADDITIONAL DEPRECIATION DURING THE YEAR UNDER APPEAL IN RESPECT OF ASSETS INSTALLED AND PUT TO USE FOR LESS THAN 180 DAYS IN THE EARLIER YEAR. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT ASSESSEE HAS INSTALLED CERTAIN FIXED ASS ETS ON WHICH IT IS ELIGIBLE FOR ADDITIONAL DEPRECIATION IN THE EARLIER YEAR. SINCE THESE ASSETS WERE INSTALLED AND PUT TO USE FOR LESS THAN 180 DAYS IN THE EARLIER YEAR, THE ASSESSEE WAS GRANTED 50% OF ADDITIONAL DEPRECIATION IN ACCORDANCE WITH PROVISIONS CONTAINED IN SECTION 32(1)(IIA) OF THE ACT. THE ASSESSEE , DURING THE YEAR UNDER APPEAL , HAD CLAIMED THE REMAINING 50% OF ADDITIONAL DEPRECIATION IN ITS RETURN OF INCOME. THE SAME WAS DISALLOWED BY THE LD. AO. THE LD. CIT(A) DELETED THE SAID DISALLOWANCE. A GGRIEVED, THE REVENUE IS IN APPEAL BEFORE US IN BOTH THE CASES. 4. THE LD. DR STATED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE REVENUE BY THE CO - ORDINATE BENCH DECISION OF CHENNAI TRIBUNAL IN THE CASE OF BRAKES INDIA LTD. VS. (2013) DCIT REPORTED IN 96 D TR 281 AND IN THE CASE OF CRI PUMPS PVT. LTD., VS. ACIT REPORTED IN 34 TAXMANN.COM 123. ITA NO. 6229/MUM/2017 M/S. MODISON METALS LTD., 3 5. ON THE OTHER HAND, LD. AR STATED THAT THIS ISSUE IS COVERED IN ASSESSEES OWN CASE FOR THE A.Y.2009 - 10, 2010 - 11, 2011 - 12 AND 2012 - 13 VIDE COMMON ORDER DATED 12/07/20 18. 6. WE HAVE HEARD RIVAL SUBMISSIONS. WE FIND THAT THIS ISSUE IS COVERED BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.3663/MUM/2016, ITA NO.7026/MUM/2016, ITA NO7029/MUM/2016 AND ITA NO.7030/MUM/2016 WHEREIN IT WAS HELD AS UNDER: - 4 . WE FIND THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF HON'BLE MADRAS HIGH COURT IN THE CASE OF CIT VS. SHRI T. P. TEXTILES PVT. LTD . (2017) 394 ITR 483 (MAD.), WHEREIN FOLLOWING THE DECISIO N OF HON'BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. RITAL INDIA (P .) LTD. (2016) 380 ITR 423 (KARN). IN VIEW OF THE ABOVE DECISIONS OF THE HON'BLE MADRAS HIGH COURT AND KARNATAKA HIGH COURT IN THE CASE OF T. P. TEXTILES PVT. LTD. (SUPRA) AND RITAL INDIA (P.) LTD. (SUPRA), WE AFFIRM THE ORDER OF CIT(A) ALLOWING ADDITIONAL DEPRECIATION. APPEALS OF REVENUE ON THIS ISSUE ARE DISMISSED. ALL THESE FOUR APPEALS OF REVENUE ARE DISMISSED. 7. WE FIND THAT T HIS TRIBUNAL HAVE PLACED RELIANCE ON THE DECISION OF HONBLE MADRAS HIGH COURT AND HONBLE KARNATAKA HIGH COURT WHILE DECIDING THE ISSUE IN FAVOUR OF THE ASSESSEE. THE RATIO LAID DOWN BY THE HONBLE MADRAS HIGH COURT AND HONBLE KARNATAKA HIGH COURT REMAIN ING UNDISPUTED , ARE NOT REITERATED HEREIN FOR THE SAKE OF BREVITY. WE HOLD THAT THE RELIANCE PLACED BY THE LD. DR ON THE DECISION OF CHENNAI TRIBUNAL WOULD NOT ADVANCE THE CASE OF THE REVENUE IN VIEW OF THE DECISION OF HONBLE MADRAS AND KARNATAKA HIGH C OURT SUPRA . RESPECTFULLY FOLLOWING THE SAID DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE AND THE DECISION ITA NO. 6229/MUM/2017 M/S. MODISON METALS LTD., 4 OF HONBLE MADRAS HIGH COURT AND HONBLE KARNATAKA HIGH COURT(SUPRA), WE DISMISS THE GROUND S RAISED BY THE REVENUE FOR BOTH THE ASSESSEES. 8. IN T HE RESULT, THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 23 / 01 /201 9 SD/ - ( AMARJIT SINGH ) SD/ - ( M. BALAGANESH ) JUDICIAL MEMBER ACCOUNTANT MEMB ER MUMBAI ; DATED 23 / 01 /201 9 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//