Smt. Sandhya Khandelia, Chandigarh V. DCIT, Circle 1(1), Chandigarh

ITA 966/CHANDI/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0813 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 12-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: VINEET KRISHNAN
• Keywords: Depreciation; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 966/CHD/2017 ! / ASSESSMENT YEAR : 2013-14 SMT. SANDHYA KHANDELIA, PLOT NO. 23, INDL. AREA-II, CHANDIGARH VS. '# THE DCIT, CIRCLE-1(1), CHANDIGARH $ % ./ PAN NO: AGOPK7450N $&/ APPELLANT ()$& / RESPONDENT *+ , - / ASSESSEE BY : SH. VINEET KRISHNAN, ADVOCATE , - / REVENUE BY : SMT. MANJIT SINGH, CIT DR . / , +0% / DATE OF HEARING : 26.03.2019 12! , +0% / DATE OF PRONOUNCEMENT : 03.06 .2019 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 03.03.2017 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-1, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE RAISED BY THE ASSESSEE IN THIS AP PEAL IS RELATING TO THE ACTION OF THE CIT(A) IN UPHOLDING THE ADDITION OF 5,66,365/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION ON SILO SEED STORAGE TANKS. ITA NO. 966-CHD-2017 SMT. SANDHYA KHANDELIA, CHANDIGARH 2 3. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT T HE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND SALE O F MUSTARD OIL BY CRUSHING MUSTARD SEEDS. THE ASSESSEE TO STORE THE M USTARD SEEDS INSTALLED SILO SEED STORAGE TANKS (IN SHORT SILO) AND CLAIMED DEPRECIATION ON THE SAME. HOWEVER, THE ASSESSING OF FICER DENIED THE DEPRECIATION CLAIMED BY THE ASSESSEE ON THE AFORESA ID MENTIONED SILO SEED STORAGE TANKS OBSERVING THAT THE BILLS FOR THE SAID STORAGE TANK SOLD TO THE ASSESSEE BY ITS SISTER CONCERN WAS OF 31.3.2013 I.E ON THE LAST DAY OF THE FINANCIAL YEAR AND THAT UNDER THE C IRCUMSTANCES THE ASSESSEE COULD NOT HAVE PUT TO USE THE AFORESAID SI LO DURING THE YEAR. 4. IN APPEAL, THE LD. CIT(A) CONFIRMED THE DISALLOW ANCE MADE BY THE ASSESSING OFFICER. 5. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS INVI TED OUR ATTENTION TO THE RELEVANT FINDINGS GIVEN BY THE CIT(A) IN PARA 7 OF THE IMPUGNED ORDER AS WELL AS COPY OF THE CHALLAN PRODUCED AT PA PER BOOK PAGE 300 TO SUBMIT THAT IN FACT THE SILO WAS PURCHASED / DELIVE RED AT THE PREMISES ON 15.4.2012, THE SAME WAS INSTALLED DURING THE YE AR AND ALSO PUT TO USE. HE HAS INVITED OUR ATTENTION TO THE IMPUGNED O RDER OF THE CIT(A) WHEREIN THE LD. CIT(A) HAS OBSERVED THAT THE LAST C EMENT BILL WAS OF DATED 15.3.2013. THE ASSESSEE HAS DEMONSTRATED BEF ORE THE CIT(A) THAT THE CEMENT BILLS WERE OF PURCHASES MADE ON 25.4.20 12 ONWARDS AND THE ITA NO. 966-CHD-2017 SMT. SANDHYA KHANDELIA, CHANDIGARH 3 SILO WAS DULY INSTALLED. FURTHER THAT IN THE MONTH OF MARCH 2013, THE ONLY BOUNDARY WALL OF THE PLANT WAS COMPETED. MEREL Y BECAUSE THE BILL WAS RAISED BY THE SISTER CONCERN ON 31.3.2013 THAT ALONE CANNOT BE A REASON TO DENY THE CLAIM OF DEPRECIATION. 6. AFTER PERUSAL OF THE ORDER OF THE CIT(A), WE FIN D THAT THE PURCHASE OF CEMENT AND OTHER MATERIAL AND EVEN THE USE OF TH E CRANE FOR SHIFTING THE SILO IS FOUND MENTION IN THE IMPUGNED ORDER OF THE CIT(A). HOWEVER, THE DEPRECIATION HAS BEEN DENIED BECAUSE T HE BILLS WAS RAISED BY THE SISTER CONCERN ON 31.3.2013. THE ACTION OF T HE LOWER AUTHORITIES IN DENYING THE DEPRECIATION ON THIS COUNT ALONE CAN NOT BE HELD TO BE JUSTIFIED WHEN THE ASSESSEE OTHERWISE HAS DEMONSTRA TED THAT THE SILO WAS BROUGHT TO ITS PREMISES ON 15.4.2012 AND THE IN STALLATION WAS COMPLETED DURING THE YEAR 2012 AND THE SAME WAS PUT TO USE. THE IMPUGNED DISALLOWANCE MADE BY THE LD. CIT(A) ON THI S ISSUE IS NOT SUSTAINABLE IN THE EYES OF LAW. THE DISALLOWANCE OF DEPRECIATION IS, THEREFORE, SET ASIDE AND THE ADDITION MADE ON THIS ACCOUNT IS ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 03/06/2019 SD/- SD/- ( . . / N.K. SAINI) ( ! ' / SANJAY GARG) #$% / VICE PRESIDENT & ' / JUDICIAL MEMBER DATED : 03.06.2019 .. ITA NO. 966-CHD-2017 SMT. SANDHYA KHANDELIA, CHANDIGARH 4 3 , (+45 65!+ / COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. ()$& / THE RESPONDENT 3. . 7+ / CIT 4. . 7+ ( )/ THE CIT(A) 5. 58 (+9 , 0 9 , :;<= / DR, ITAT, CHANDIGARH 6. < >/ / GUARD FILE 3 . / BY ORDER, ? / ASSISTANT REGISTRAR