TAMIL NADU SALT CORPORATION LIMITED, CHENNAI V. ACIT CORPORATE CIRCLE 3 (1), CHENNAI

ITA 834/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7418 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 08-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR ADD L
• Assessee Lawyers: J SREE VIDYA
• Keywords: Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , , ' BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.834/CHNY/2018 /ASSESSMENT YEAR: 2007-08 TAMIL NADU SALT CORPORATION LTD., L L A BUILDING, 735,ANNA SALAI, CHENNAI 600 002. VS. ASST. COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(1), CHENNAI-34. [ PAN: AAACT 2482 L ] ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : SMT.J.SREE VIDYA,ADVOCATE *+) , /RESPONDENT BY : SHRI R.CLEMENT RAMESH KUMAR,ADDL. C.I.T D.R , /DATE OF HEARING : 22.07.2019 , /DATE OF PRONOUNCEMENT : 22.07.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-11, CHENNAI, I N ITA NO.269/C.I.T(A)-11/2013-14 DATED 12.12.2017 FOR T HE AY 2007-08. ITA NO.834/CHNY/2018 :- 2 -: 2. SMT.J.SREE VIDYA REPRESENTED ON BEHALF OF THE RE VENUE AND SHRI R.CLEMENT RAMESH KUMAR REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY LD.AR THAT THE ONLY ISSUE R AISED IN THIS APPEAL IS AGAINST THE ACTION OF LD.CIT(A) IN CONFIRMING THE A CTION OF THE ASSESSING OFFICER IN DISALLOWING 90% OF THE DEPRECIATION CLAI MED BY THE ASSESSEE IN RESPECT OF TEMPORARY ROADS ADJACENT TO SALT PANS . IT WAS A SUBMISSION THAT FOR THE PURPOSE OF ACCESS AND MOVEMENT OF SALT AND EQUIPMENT, ASSESSEE HAD TO BUILD CUTCHA ROADS USING CLAY AND S AND WITHIN THE SALT PANS. THE ASSESSEE HAD CLAIMED 100% DEPRECIATION ON THE SAME. IT WAS A SUBMISSION THAT THE ASSESSING OFFICER HAD HELD THAT ONLY 10% OF DEPRECIATION ON TEMPORARY ROADS ADJACENT TO SALT PANS WAS ALLOWABLE . IT WAS A SUBMISSION THAT THE ISSUE WAS SQUARELY COVERE D BY THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF C.I. T VS. SALT AND ALLIED INDUSTRIES LTD., REPORTED IN [1993] 199 ITR 233 (GU JARAT) WHEREIN IT HAS BEEN HELD THAT FOLLOWING THE DECISION OF GUJARAT HI GH COURT IN THE CASE OF C.I.T VS. BHAVNAGAR SALT AND INDUSTRIES WORKS P. LT D. IN [1987] 163 ITR 265(GUJ.), WHEREIN IT HAS BEEN HELD THAT SALT PANS ETC., IN RESPECT OF WHICH DEPRECIATION AT 100% IS CLAIMED, WERE MADE OF EARTH AND CLAY, THEN 100 PER CENT DEPRECIATION IS ADMISSIBLE IRRESPECTIVE OF THE FACT WHETHER SALT PANS, ETC., IN RESPECT OF WHICH DEPRECIATION IS CLA IMED, ARE NEW OR OLD. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORT THE ORDE R OF THE LD.CIT(A). ITA NO.834/CHNY/2018 :- 3 -: 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS IT IS NOTICED THAT THE ROA DS ETC., IN SALT PANS ON WHICH THE ASSESSEE HAS CLAIMED 100% DEPRECIATION, I S MADE OF CLAY AND SAND AND AS IT IS NOTICED THAT THE ISSUE IS SQUAREL Y COVERED BY THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF C.I.T VS. SALT AND ALLIED INDUSTRIES LTD., REFERRED TO SUPRA, RESPECTFULLY FO LLOWING THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF C.I.T VS. SALT AND ALLIED INDUSTRIES LTD.,(SUPRA), THE ASSESSING OFFICER IS D IRECTED TO ALLOW THE DEPRECIATION CLAIMED @ 100% IN RESPECT OF TEMPORARY ROADS ADJACENT TO SALT PANS BY THE ASSESSEE. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THE 22 JULY, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 3 /DATED: 22 ND JULY, 2019. K S SUNDARAM , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. /GF