Mavin Texturisers Pvt.Ltd., Surat V. The Dy.CIT, Circle-1, Surat

ITA 782/AHD/2010

• Counselvise Citation: 78220514 RSA 2010
• Duration Of Justice: 2 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 12-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV SRDR
• Keywords: Depreciation; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE SHRI, A.K.GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.782/AHD/2010 ASSESSMENT YEAR:2007-08 MAVIIN TEXTURISERS PVT. LTD. 2 ND , FLOOR CORPORATE BUILDING, BOMBAY MARKET, SURAT PAN NO.AACCM4411G V/S . DY COMMISSIONER OF INCOME-TAX, CIRCLE-1, SURAT (APPELLANT) .. (RESPONDENT) /BY APPELLANT SHRI MEHUL SHAH, AR /BY RESPONDENT SHRI B.L. YADAV, SR-DR /DATE OF HEARING 23-05-2012 /DATE OF PRONOUNCEMENT 15 -06-2012 O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-I, SURAT DATED 22-02-2010 F OR THE ASSESSMENT YEAR 2007-08. THE ASSESSEE HAS RAISED SOLE EFFECTIVE GROUND, WHIC H REPRODUCED HEREUNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AS WELL ASS LAW ON THE SUBJECT, THE LEARNED CIT(APPEALS) HAS ERRED IN CON FIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING DEPRECIATION OFRS. 2,84,223/- OUT OF TOTAL DEPRECIATION OF RS.4,06,032/- CLAIMED AT 50% ON PLA NT AND MACHINERY PURCHASED UNDER TUF SCHEME. 2. THE FACTS OF THE CASE ARE THAT ASSESSEE IS ENGAG ED IN THE BUSINESS OF YARN TWISTING AND TEXTURISING AND ALSO GREY CLOTH MANUFA CTURING. THE CASE WAS PICKED UP FOR SCRUTINY FOR A.Y. 2007-08 AND ASSESSMENT WAS FR AMED U/S 143(3) OF THE INCOME- ITA NO.782/AHD/2010 A.Y. 2007-08 MAVIN TEXTURISERS PVT. LTD. V. DCIT, CIR-1 SRT PAGE 2 TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ). THE ASSESSING OFFICER MADE DISALLOWANCE ON ACCOUNT OF EXCESS CLAIM OF DEPRECIA TION ON PLANT AND MACHINERY AND DISALLOWANCE OUT OF REPAIR AND RENEWAL EXPENSES. TH E ASSESSMENT ORDER WAS CHALLENGED BEFORE LD. CIT(A) BY THE ASSESSEE AND LD . CIT(A) AFTER CONSIDERING THE SUBMISSION OF ASSESSEE DELETED DISALLOWANCE MADE ON ACCOUNT OF REPAIRS AND RENEWAL EXPENSES AMOUNTING TO RS.2,16,783/- AND CON FIRMED THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION @ 50% ON MA CHINERY PURCHASED UNDER TUF SCHEME. 3. THE ASSESSEE FEELING AGGRIEVED BY THIS ORDER OF LD. CIT(A) PREFERRED APPEAL BEFORE US. 4. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESS EE SUBMITTED THAT THIS ISSUE HAS ALREADY BEEN DECIDED IN EARLIER YEARS BY THE HO NBLE ITAT AHMEDABAD C BENCH IN ITA NO.1044/AHD/2007 AND ITA NO.2296/AHD/2008 IN ASSESSEES OWN CASE. 5. ON THE CONTRARY, LD. SR-DR RELIED UPON THE ORDER S PASSED BY AUTHORITIES BELOW. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND JUDGMENT CITED BY THE PARTIES. WE FIND T HAT THIS ISSUE HAS BEEN DECIDED IN FAVOUR OF ASSESSEE BY HONBLE CO-ORDINATE BENCH IN ITA NO.1044/ AHD/2007 (SUPRA) FOR A.Y. 2004-05. VIDE ITS ORDER DATED 22.03.2010 H ONBLE TRIBUNAL HAS HELD AS UNDER:- 4. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF THE VIEW THAT THE ISSU9E IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF I TAT AHMEDABAD B BENCH IN THE CASE OF NAGGALIA SYNTHETICS PVT. LTD. IN ITA NO.2213/AHD/2008 DATED 10-11-2009 IN WHICH THE TRIO FOLLOWED ITS EARLIER O RDER AND ALLOWED THE CLAIM OF THE ASSESSEE. THE FINDINGS OF THE TRIBUNAL IN THE A BOVE CASE IN PARA ARE REPRODUCED AS UNDER:- 7. AFTER HEARING THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES, WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE DECISION OF ITAT AHMEDAB AD D BENCH IN THE CASE OF BIPINCHANDA MOHANLAL GAJJAR VS. ITO W-6 (11), SURAT IN ITA NO.3128/AHD/2008 DATED 18-02-2009 RELATING TO AY 2005-06. THE ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL IS SIMI LAR TO THAT OF THE CASE ITA NO.782/AHD/2010 A.Y. 2007-08 MAVIN TEXTURISERS PVT. LTD. V. DCIT, CIR-1 SRT PAGE 3 OF BIPNCHANDRA MOHANLAL GAJJAR (SUPRA). RESPECTFULL Y FOLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF BIPINCHANDRA M OHANLAL GAJJAR (SUPRA), WE HOLD THAT SINCE ADMITTEDLY, THE TWISTIN G MACHINE WAS USED BY WEAVING SECTOR OF TEXTILE INDUSTRY, DEPRECIATION ON THE SAID MACHINERY @ 50% SHOULD BE ALLOWED. WE ACCORDINGLY, ALLOW THE GROUND OF APPEAL. 5 IN VIEW OF THE ABOVE ORDER, WE SET ASIDE THE ORD ERS OF THE AUTHORITIES BELOW AND ALLOW THE CLAIM OF THE ASSESSEE FOR HIGHER DEPR ECIATION. AS A RESULT, THIS GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED. FURTHER, THE HONBLE CO-ORDINATE BENCH IN ITA NO.2296/AHD/2008 HAS OBSERVED AS UNDER:- 5. AT THE TIME OF HEARING, BOTH SIDES CONCEDED THA T THE CONTROVERSY INVOLVED IN THIS APPEAL IS SQUARELY COVERED IN FAVOUR OF ASS ESSEE BY THE DECISION OF ITATD, C BENCH, AHMEDABAD IN ITA NO.1044/AHD/2007 FOR THE ASSESSMENT YEAR 2004-05 IN ASSESSEES OWN CASE. IT IS PERTINEN T TO NOTE THAT IN THE ASSESSMENT YEAR 2004-05, ITAT, B BENCH, AHMEDABAD FOLLOWING THE DECISION OF ITAT C BENCH, AHMEDABAD IN ITANO.1044/AHD/2007 FOR THE ASSESSMENT YEAR 2004-05 IN ASSESSEES OWN CASE (SUP RA) DIRECT THE ASSESSING OFFICER TO ALLOW DEPRECIATION @ 50%. RESU LTANTLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. IN THIS VIEW OF THE MATTER, RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE CO- ORDINATE BENCHES IN I.T.A. NO.1044/A/2007 AND I.T.A . NO.2296/A/2008, THIS GROUND OF THE ASSESSEES APPEAL IS ALLOWED. THE ASSESSING OFFICER IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE IN RESPECT OF DEPRECIATION @ 50% ON PLANT AND MACHINERY AND DELETE ADDITION OF RS.2,84,223/- MADE ON ACCOUNT OF DISALLOWANCE OF HIGHER DEPRECIATION. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. SD/- SD/- (A.K.GARODIA) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, TRUE COPY *DKP - 15/06/2012 ()* + ,- ,- ,- ,- ../ ../ ../ ../ 0/ 0/ 0/ 0/ / COPY OF ORDER FORWARDED TO:- ITA NO.782/AHD/2010 A.Y. 2007-08 MAVIN TEXTURISERS PVT. LTD. V. DCIT, CIR-1 SRT PAGE 4 1. / APPELLANT 2. / RESPONDENT 3. *.3 , ,4 / CONCERNED CIT 4. , ,4- / CIT (A) 5. /67 ...3, , .3 , ()* / DR, ITAT, AHMEDABAD 6. 79: ;< / GUARD FILE. BY ORDER/ ,- , =/ ( > , .3 , ()* +