Bhagwati Sponge Pvt. Ltd., Burdwan V. DCIT, Circle-1, Asansol, Asansol

MA 118/KOL/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 5119 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 29-08-2016
• Court: TRIBUNAL
• Keywords: Depreciation; Additional depreciation; Capital receipt

Judgement Text

1 MA NO.118/KOL/2016 BHAGWATI SPONGE PVT. LTD., AY 2007-08 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA [BEFORE SHRI N. V. VASUDEVAN, JM & SHRI M. BALAGAN ESH, AM] M.A. NO. 118/KOL/2016 IN I.T.A NO. 1672/KOL/2014 ASSESSMENT YEAR: 2007-08 BHAGWATI SPONGE PVT. LTD. VS. DEPUTY COMMISSION ER OF INCOME-TAX, (PAN: AACCB3462A) CIRCLE-1, ASANSOL ( APPLICANT ) ( RESPONDENT ) DATE OF HEARING: 09.12.2016 DATE OF PRONOUNCEMENT: 09.12.2016 FOR THE APPLICANT: SHRI V. N. PUROHIT, CA FOR THE RESPONDENT: SHRI SALLONG YADEN, ADDL. CIT, DR , ORDER PER SHRI M. BALAGANESH, AM: BY WAY OF THIS MISC. APPLICATION ASSESSEE HAS POINT ED OUT THAT THERE IS MISTAKE APPARENT FROM RECORD IN THE ORDER OF TRIBUNAL IN IT A NO. 1672/KOL/2014 FOR AY 2007-08 DATED 08.07.2016 AND FOR THIS, APPLICATION U/S. 254 (2) OF THE ACT IS FILED. 2. IT WAS POINTED OUT BY THE LD. AR THAT THERE IS M ISTAKE APPARENT FROM RECORD IN THE ORDER OF THE TRIBUNAL AND HE REFERRED TO THE PETITI ON WHEREIN THE OBSERVATION OF THE TRIBUNAL IS REPRODUCED WHICH READS AS UNDER: 8.8. KEEPING IN VIEW THE OBJECTS OF THE WEST BENG AL INCENTIVE SCHEME 2000 AND VARIOUS JUDICIAL PRECEDENTS RELIED UPON HEREINABOVE, WE HOL D THAT THE CAPITAL SUBSIDY OF RS. 1,09,73,000/- IS TO BE TREATED AS CAPITAL RECEIPT. CONSEQUENTIALLY THE ASSESSEE NEED NOT REDUCE THE SAME FROM THE COST OF THE ASSET FOR THE PURPOSE OF CLAIMING DEPRECIATION. WE HOLD ACCORDINGLY. SIMILARLY, WE HOLD THAT THE INTERES T SUBSIDY OF RS. 10,38,005/- AND ELECTRICITY SUBSIDY OF RS. 11,14,841/- SHOULD ALSO BE TREATED A S CAPITAL RECEIPT. WE DIRECT THE LEARNED AO TO GRANT THE ADDITIONAL DEPRECIATION ON THE ACTU AL COST OF ASSET BEFORE REDUCING SUBSIDY IN TERMS OF SECTION 32(1)(IIA) OF THE ACT. WE HOLD ACC ORDINGLY. IN VIEW OF THE OBSERVATION HELD BY THE TRIBUNAL IN PARA 8.8 AS REFERRED TO ABOVE, HE RESPECTFULLY PRAYED TO ADD THE AMOUNT OF RS.40,36,0 61/- BEFORE OR AFTER THE AMOUNT OF RS.10,38,005/- IN 5 TH LINE OF PARA 8.8 OF THE TRIBUNALS ORDER. 3. AFTER PERUSING THE ORDER OF THE TRIBUNAL, WE FIN D THAT THERE IS A MISTAKE APPARENT FROM RECORD IN THE ORDER OF THE TRIBUNAL WHEREIN THE AMO UNT OF RS.40,36,061/- WAS INADVERTENTLY 2 MA NO.118/KOL/2016 BHAGWATI SPONGE PVT. LTD., AY 2007-08 OMITTED. THE SAID AMOUNT OF RS.40,36,061/- IS TO B E READ AFTER RS.10,38,005/- IN PARAGRAPH 8.8 OF THE TRIBUNALS ORDER DATED 08.07.2016. WE O RDER ACCORDINGLY. 4. IN THE RESULT, MISC. APPLICATION OF ASSESSEE IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (N. V. VASUDEVAN) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED : 9 TH DECEMBER, 2016 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT BHAGWATI SPONGE PVT. LTD., P.O. JAMURIA , DIST. BURDWAN (WB), PIN-713336 2 RESPONDENT DCIT, CIRCLE-1, ASANSOL 3 . THE CIT(A), ASANSOL 4. 5. CIT , ASANSOL D R, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .