ACIT,COMPANY CIRCLE-2(3), CHENNAI V. M/S.INDWEL LIANINGS PRT LTD , CHENNAI

MA 164/CHNY/2022

AI Insights

The case involves the Income Tax Appellate Tribunal in Chennai, where the Revenue filed a Miscellaneous Application pointing out mistakes in a previous order concerning the depreciation claims under section 80IA(4) of the Income Tax Act for the assessment years 2002-03 and 2003-04. The Tribunal acknowledged the mistake in applying section 80IA(4) for the assessment year 2003-04, as the assessee had not pressed this claim in their case. However, for the assessment year 2002-03, the Tribunal found that the relevant provisions for claiming 100% depreciation were not applicable, as these provisions came into effect only from the subsequent assessment year.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134795 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-07-2023
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 06-07-2023
• Assessment Year: 2003-2004
• Appeal Filed On: 17-11-2022
• Other Referred Cases: Tax Case (Appeal) No.1905 of 2008
• Laws Referred To: Income Tax Act, Income Tax Rules, 1962
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: CKN RAVI SHANKARA PRABHU
• Keywords: Depreciation
• Section: 32

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER िविवध यािचका सं / M.A. No.164/CHNY/2022 (arising in I.T.A. No. 1632/CHNY/2007) िनधाᭅरण वषᭅ / Assessment Year : 2003-04 The ACIT, Company Circle II(3), Chennai. Vs. Indwel Linings Pvt. Ltd., No.F/20, Second Main Road, Anna Nagar, Chennai – 600 102. PAN: AAACI 2632M (अपीलाथᱮ / Applicant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से /Applicant by : Shri AR.V. Sreenivasan, Addl.CIT ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri CKN Ravi Shankara Prabhu, CA सुनवाई कᳱ तारीख/ Date of hearing : 07.07.2023 घोषणा कᳱ तारीख /Date of Pronouncement : 07.07.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: By way of this Miscellaneous Application, the Revenue has pointed out the following two mistakes in the order passed by the Tribunal in ITA No. 1632/CHNY/2007 dated 11.05.2022:- i. ITAT vide para 5 “The assessee is engaged in developing infrastructure facility as contemplated u/s 80IA(4) of the 2 M.A No.164/CHNY/2022 Act and the assessee is eligible for depreciation in term of clause (Vii) of Appendix-1 of the Income Tax Rules, 1962 at the rate of 100%. ii. The Tribunal wrongly allowed depreciation in both the assessment years i.e, AY 2002-03 and 2003-04, wherein for AY 2003-04 claim of depreciation @ 100% was allowed and for AY 2002-03, the claim is not allowable because the relevant appendix under rule 5 was applicable only for and from AY 2003-04 and not applicable for AY 2002-03. 2. In view of the above two mistakes, the ld. Senior DR made arguments that the Tribunal’s order dated 11.05.2022, para 5 held that the assessee is engaged in developing infrastructure facility as contemplated u/s.80IA(4) of the Act is a clear cut mistake in the order of the Tribunal in view of the judgment of Hon’ble Madras High Court assessee’s own case for assessment year 2003-04 in Tax Case (Appeal) No.1905 of 2008 dated 13.12.2001, wherein the Hon’ble High Court has observed that the assessee has not pressed the claim of deduction in term of section 80IA(4) of the Act and it has become final vide para 8 as under:- 3 M.A No.164/CHNY/2022 8. During the course of hearing, the learned counsel for the appellant submitted that they are not pressing their claim for deduction in terms of 80IA(4). The learned counsel would however, submit that the appellant is entitled to claim 100% deduction in terms of section 32 r/w Entry 7 Rule 5 of the Income Tax Rules of Appendix I, whereas, the assessing officer erred in granting depreciation only at 25% overlooking the said provisions of law. 3. When this was confronted to ld.AR for the assessee, he could not controvert the above fact situation and admittedly, the Hon’ble High Court has categorically ordered in the judgment that the assessee has not pressed the claim of deduction in term of section 80IA(4) of the Act and that has become final. Hence, to that extent, we amend the order of Tribunal and rectify the mistake. 4. Coming to second issue regarding the claim of depreciation @ 100% in assessment year 2002-03 claimed in ITA No.1631/Mds/2007, we noted that this relates to assessment year 2002-03, which is not before us now in miscellaneous application. The Miscellaneous Application pertains to assessment year 2003-04. The relevant appendix under Rule 5 is applicable only for assessment year 2003-04. This was also not controverted by ld.Senior DR before us now. Hence to that extent we cannot adjudicate the issue of assessment year 2002-03. But we want to clarify that the depreciation @ 100% for assessment year 2003-04, 4 M.A No.164/CHNY/2022 the assessee is entitled, to that order will remain as it is. In term of the above, this issue of Revenue is dismissed. 5. In the result, the miscellaneous application of the Revenue is partly-allowed. Order pronounced in the open court on 7 th July, 2023 at Chennai Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य /ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 7 th July, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Applicant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.