Madras Cements Ltd., Rajapalayam V. ACIT, Virudhunagar

MA 122/CHNY/2015

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3566 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 20-11-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 23-07-2015
• Court: TRIBUNAL
• Department Lawyers: DR ANJANEYALUCIT
• Assessee Lawyers: V JAGADISANC A
• Keywords: Depreciation; Bonafide belief

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHE NNAI . , ! ' . #$ , % & BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER M.P. NOS.121 & 122/MDS./2015 (I.T.A.NOS.2265 & 2266/MDS./2012 ASSESSMENT YEARS : 2009-10 & 2009-10) M/S.MADRAS CEMENTS LTD ., NOW KNOWN AS RAMCO CEMENTS LTD ., RAMANDIRAM, RAJAPALAYAM 626 117. VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, VIRDHUNAGAR. PAN AABCM 8375 L ( '( / APPELLANT ) ( )*'( / RESPONDENT ) / APPELLANT BY : MR.V.JAGADISAN,C.A / RESPONDENT BY : DR.ANJANEYALU,CIT D.R / DATE OF HEARING : 20.11.2015 /DATE OF PRONOUNCEMENT : 20.11.2015 + / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE TWO MISCELLANEOUS PETITIONS ARE FILED BY THE ASSESSEE, PRAYING FOR RECTIFICATION OF THE ORDER OF THE TRIBU NAL IN ITA NOS.2265 & 2266/MDS./2012 DATED 11.06.2013 FOR THE ASSESSMENT YEAR 2009-10. MP NOS. 121, 122/MDS/15 MADRAS CEMENTS LTD. 2 2. THE LD. A.R. SUBMITTED BEFORE US THAT TRIBUNAL HAS NOT DECIDED THE DISPUTE WITH RESPECT TO THE RATE OF DEPRECIATIO N CLAIMED BY THE ASSESSEE ON THE GROUND THAT THE SAME WAS NOT RAISED BEFORE THE LD.CIT(A). THE OBSERVATIONS OF THE TRIBUNAL IN ITS ORDER AT PAGE NO.14 PARA 3.12 WAS CITED BEFORE US WHICH IS REPROD UCED HEREIN BELOW FOR REFERENCE:- IN ITA NO.327/2011-12 FILED AGAINST EH QUANTUM ASS ESSMENT COMPLETED U/S.143(3), NO GROUND RELATING TO THE DIS PUTED RATE OF DEPRECIATION HAS BEEN RAISED BEFORE THE COMMISSION ER OF INCOME TAX (A). THE LD. A.R. FURTHER SUBMITTED THAT THE ISSUE WAS V ERY MUCH RAISED BEFORE THE LD. CIT (A) AND POINTED OUT BEFORE US TO PAGE 52 OF THE PAPER BOOK, WHICH CONTAINED THE GROUNDS RAISED BEFO RE THE LD. CIT (A) FOR THE ASSESSMENT YEAR 2009-10 AND THE SAME IS REPRODUCED HEREIN BELOW FOR REFERENCE:- GROUND NO.9 THE ASSESSING OFFICER IS NOT JUSTI FIED IN DENYING HIGHER RATE OF DEPRECIATION AT 100% / 80% IN RESPECT OF EQ UIPMENTS FALLING UNDER AIR POLLUTION CONTROL EQUIPMENTS, WASTE HEAT RECOVE RY EQUIPMENTS, SOLID WASTE RECYCLING AND RESOURCE RECOVERY SYSTEM ON A M ERE COMPARISON OF THE NOMENCLATURE OF ITEMS OF EQUIPMENTS ACQUIRED BY THE ASSESSEE TO THE NOMENCLATURE SET OUT IN RESPECT OF SEVERAL EQUIPMEN TS FALLING UNDER THE ABOVE THREE CATEGORIES, WITHOUT AFFORDING PROPER OP PORTUNITY TO THE MP NOS. 121, 122/MDS/15 MADRAS CEMENTS LTD. 3 ASSESSEE IN REGARD TO THE FUNCTIONALITIES OF THE SE VERAL EQUIPMENTS IN RESPECT OF WHICH HIGHER RATE OF DEPRECIATION IS CLA IMED. IT WAS THEREFORE PLEADED THAT THE ORDER OF THE TRIB UNAL DATED 11 TH THE JUNE 2013 MAY BE RECALLED FOR THE LIMITED PURPOSE O F ADJUDICATING THE ABOVE STATED ISSUE. THE LD. D.R COULD NOT CONTROVER T THE SUBMISSIONS OF THE LD. A.R. 3. AFTER HEARING BOTH THE SIDES AND PERUSING THE M ATERIALS ON RECORD, WE FIND MERIT IN THE SUBMISSION OF THE LD. A.R. THE TRIBUNAL WAS UNDER THE BONAFIDE BELIEF THAT THE ISSUE WITH R ESPECT TO THE RATE OF DEPRECIATION WAS NOT RAISED BEFORE THE LD. CIT (A) AND HENCE, RESTRAINED FROM ADJUDICATING THE SAME. THESE FACTS ALSO COULD NOT BE REFUTED BY THE LD. D.R. THEREFORE, IN THE INTEREST OF JUSTICE WE HEREBY RECALL THE ORDER OF THE TRIBUNAL FOR THE LIMITED PU RPOSE OF ADJUDICATING THE ISSUE WITH RESPECT TO THE RATE OF DEPRECIATION RAISED BY THE ASSESSEE BEFORE THE TRIBUNAL WHICH REMAINS TO BE AD JUDICATED ON THE EARLIER OCCASION. MP NOS. 121, 122/MDS/15 MADRAS CEMENTS LTD. 4 4. IN THE RESULT, BOTH THE MISCELLANEOUS PETITIONS FILED BY THE ASSESSEE ARE ALLOWED AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 20 TH NOVEMBER, 2015 AT CHENNAI. SD/- S D-/ ( ! ' . #$ ) ( DUVVURU RL REDDY ) ( . ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 20 TH NOVEMBER, 2015 . K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE