The DCIT, Circle-2, Surat V. Shri Narendra D.Modh, Surat

ITA 858/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76712 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 21-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Additional depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO.858/AHD/2011 A.Y. 2007-08 DY. COMMISSIONER OF INCOME TAX, CIRCLE-2, SURAT. VS SHRI NARENDRA D MODH, PROP. OF M/S. SAINATH CREATION & M/S. MEENAXI EXPORTS, 209, VAKHARIA TEXTILE MARKET, RING ROAD. PAN: ABOPM 3661J (APPELLANT) (RESPONDENT) REVENUE BY : SHRI SAMIR TEKRIWAL, SR.D.R., ASSESSEE(S) BY : NONE / DATE OF HEARING : 07/05/2014 / DATE OF PRONOUNCEMENT: 16/05/2014 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE ARISING FROM THE ORDER OF LEARNED CIT(A)-II, SURAT, DATED 3.1.2011. THE ONLY GROUND RAISED BY THE REVENUE IS REPRODUCED BELOW: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF ADDITIONAL DEPRECIATION CLAIMED U/S.32(1)(IIA) OF T HE IT ACT ON MACHINERY USED FOR EMBROIDERY WORK. 2. IT WAS NOTED BY THE AO IN THE IMPUGNED ASSESSMEN T ORDER PASSED U/S.143(3) DATED 18.12.2009 THAT THE ASSESSEE IN IN DIVIDUAL CAPACITY IS ENGAGED IN EMBROIDERY WORK. THE ASSESSEE HAS INSTAL LED PLANT AND MACHINERY FOR A SUM OF RS.45 LACS IN THE FIRST HALF OF THE ACCOUNTING PERIOD AND FURTHER INSTALLED PLANT AND MACHINERY FO R A SUM OF ITA NO.858/AHD/2011 DY. COMMISSIONER OF INCOME TAX VS. SHRI NARENDRA D MODH. A.Y.2007-08 - 2 - RS.21,38,486/- IN THE SECOND HALF OF THE ACCOUNTING PERIOD. THE ASSESSEE HAD CLAIMED ADDITIONAL DEPRECIATION @ 20% AMOUNTING TO RS.11,13,849/-. THE CLAIM OF ADDITIONAL DEPRECIATION WAS DISALLOWED BY THE AO. 3. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APP ELLATE AUTHORITY, RELIANCE WAS PLACED ON THE ORDER OF THE TRIBUNAL AN D THE CLAIM WAS ALLOWED IN THE FOLLOWING MANNER: DECISION 3.1 THE ISSUE INVOLVED IN THE FIRST GROUND OF APPEA L IS WHETHER EMBROIDERY WORK CARRIED ON EMBROIDERY MACHINES IS A MANUFACTURING ACTIVITY OR NOT AND, CONSEQUENTLY, ADDITIONAL DEPRE CIATION U/S.31(1)(IIA) IS ALLOWABLE ON THESE MACHINES OR NOT. THIS ISSUE H AS SINCE BEEN DECIDED BY THE ITAT, AHMEDABAD BENCH IN SEVERAL CASES, IN F AVOUR OF THE ASSESSEE, INCLUDING THE DECISION IN THE CASE OF M/S . ASWANI INDUSTRIES, SURAT, A.Y. 2007-08, RELIED UPON BY THE APPELLANT. I, THEREFORE, RELYING UPON THE DECISION OF THE ITAT, AHMEDABAD IN ABOVE S AID CASE ALLOW THIS GROUND OF APPEAL. 4. ON THE DATE OF HEARING, NO ONE HAS APPEARED FROM THE SIDE OF THE RESPONDENT-ASSESSEE. FROM THE SIDE OF THE REVENUE, LEARNED DR. MR. SAMIR TEKRIWAL APPEARED AND SUPPORTED THE ACTION OF THE AO. NOW, WE FIND THAT THIS ISSUE IS VERY WELL SETTLED IN FAVOUR OF ASSESSEE BY SEVERAL DECISIONS OF THIS TRIBUNAL AND SOME OF THE CASES AR E LISTED BELOW: SL. NO.(S) DECISION IN THE CASE OF .. IN ITA NO.(S) .. 1. M/S. HARI FASHIONS VS. ASST. CIT 3105/AHD/2010. A.Y.2007-08 ITAT BENCH A AHMEDABAD, ORDER DATED 27.05.2011 2. ITO VS. HARIPRIYA PROCESSORS PVT. LTD. 1569/AHD/2010, A.Y.2007-08 ITAT BENCH SMC AHMEDABAD, ORDER DATED 08.09.2009 3. ITO VS. M/S. ASWANI INDUSTRIES, SURAT 2103/AHD/2010, A.Y.2007-08 ITAT ITA NO.858/AHD/2011 DY. COMMISSIONER OF INCOME TAX VS. SHRI NARENDRA D MODH. A.Y.2007-08 - 3 - BENCH D AHMEDABAD, ORDER DATED 29.10.2010 4. M/S. K.K. CREATION VS. ITO 1965/AHD/2010, A.Y. 2008-09 ITAT BENCH B AHMEDABAD, ORDER DATED 30.04.2012 5. SINCE, LEARNED CIT(A) HAS FOLLOWED THE ORDER OF THE RESPECTED CO- ORDINATE BENCH; HENCE, NO INTERFERENCE IS REQUIRED. RESULTANTLY, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE AND THE SAME IS HEREBY DISMISSED. SD/- SD/- (N.S. SAINI) ( MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD; DATED 16/05/2014 PRABHAT KR. KESARWANI, SR. P.S. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-III, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD