India Gelatine & Chemicals Ltd., Ahmedabad V. The Jt. CIT, Range-4, Ahmedabad

MA 6/AHD/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3755 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 27-02-2022
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Depreciation; Capital expenditure; Set aside

Judgement Text

, ‘C’ । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMEBR & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR MISCELLANEOUS APPLICATION No. 06/Ahd/2022 WITH ITA No. 934/Ahd/2015) ( Assess ment Ye ar : 2011-12) In di a Gel at in e & Ch e mic als L td . 70 3/7 04 , Sh il p, 7 t h Fl oor , Nea r Mu ni ci pa l Ma rke t, Sh eth C . G. R oa d, Na vra ng pu ra , Ah m eda ba d - 38 00 09 / V s . Joi nt C o mmi s sio ne r o f In co me T ax Ra nge -4 , Ah me da b ad / /P A N / G IR N o . : A A A C I3 6 7 6 F ( Appellant) . . ( / Respondent) /Appellant by : Shri Rushin Patel, A.R. / Respondent by : Shri Urjit Shah, Sr. D.R. ु नव D a t e o f H e a r i n g 10/06/2022 !"# /D a t e o f P r o n o u n c e m e n t 29/06/2022 ORDER PER MAHAVIR PRASAD, JM: This miscellaneous application has been filed by the assessee seeking part restoration of appeal ITA No. 934/Ahd/2015 for A.Y. 2011-12. MA No. 06/Ahd/2022 with ITA No.934/Ahd/2015 [India Gelatine & Chemicals Ltd. vs. JCIT] AY 2011-12 - 2 - 2. In this Miscellaneous Application, assessee stated that inadvertently it seems that ITAT while passing the order dated 27.08.2021 has not disposed of the aforesaid Ground No.3 raised in respect of disallowance of repairs to building expenses of Rs.6,38,871/-. 3. We have heard both the parties and gone through the miscellaneous application. In the instant case, ITA Nos. 876 & 934/Ahd/2015 & ITA No. 1376/Ahd/2017 were filed by the assessee. In ITA No.1376/Ahd/2017, we have dealt with the ground with regard to disallowance of repairs to building expenses and in the said matter, we allowed the ground of the assessee for statistical purposes. However, inadvertently this ground remained to be unadjudicated. 4. In the result, the miscellaneous applications filed by the assessee is allowed. 5. With the consent of both the parties, we have heard the assessee. As we have allowed the M.A. No. 06/Ahd/2022and in order to rectify the omission, the same ground is as follows: “2. To delete disallowance of Repairs to Building expenses of Rs.6.38,871/-. (i) That the appellant company has incurred expenditure for Current Repairs to its existing building of Rs.94.63 Lacs. (ii) The assesses company has Buildings of Rs. 1630.35 Lacs. (iii) That the expenditure is in the nature of current repairs of its existing building and accordingly the same are to be allowed and disallowance of expenditure made by the assessing officer of Rs. 6,38,871/- without verifying the facts is required to be deleted. MA No. 06/Ahd/2022 with ITA No.934/Ahd/2015 [India Gelatine & Chemicals Ltd. vs. JCIT] AY 2011-12 - 3 - That your Honour may kindly be pleased to grant such further or alternative reliefs as are just and equitable on due appreciation of facts submitted & filed before your Honour and further it craves your Honour's leave to add or amend any of the grounds of appeal either before or in the course of hearing.” When the expenditure is in the nature of current repairs of its existing building and accordingly same are to be allowed after hearing both the parties in connected ITA No.1376/Ahd/2017, wherein ITAT held as under: “30. Thereafter appeal before the Ld. CIT(A) has held appellant has failed to prove that any existing roads have been repaired by the said contractor that in the absence of any definition of nature of his work, appellant ought to have capitalized the above expenditure of Rs. 9,41,591/- along with other work carried out of Rs. 35,67,601/- from the same party and appellant has made an attempt to claim the aforesaid expenditure as revenue without any basis and just to reduce its income which is not permissible and confirmed the action of the A.O. 31. We have heard both the parties and gone through the impugned order. The Ld. A.O. has made disallowance for the reason that payments were made for new work in respect of road which was capital in nature. Thus, expenditure were required to be capitalized with the cost of the road if above said is a capital expenditure in that case appellant is entitled to bet depreciation as per law. Therefore, we set aside matter to the file of the Assessing Officer and direct him to calculate the depreciation and gave him benefit of the same. 32. Thus, this ground of appeal is allowed for statistical purposes.” In this case also we hold that learned A.O. has made disallowance for the reason that payments were made for new work in respect of road which was capital in nature. Thus, expenditure were required to be capitalized MA No. 06/Ahd/2022 with ITA No.934/Ahd/2015 [India Gelatine & Chemicals Ltd. vs. JCIT] AY 2011-12 - 4 - with the cost of the road if above said is a capital expenditure in that case appellant is entitled to bet depreciation as per law. Therefore, we set aside matter to the file of the Assessing Officer and direct him to calculate the depreciation and gave him benefit of the same. Thus, this ground of appeal is allowed for statistical purposes. 6. In the result, Miscellaneous Application filed by the assessee is allowed and appeal filed by the assessee on this ground is allowed for statistical purposes. Sd/- Sd/- (ANNAP UR NA GUP TA) (MAHAVIR PRASAD) ACC OUNTANT MEMB ER JUDICIAL MEMBER Ahmedabad: Dated 29/06/2022 True Copy S.K.SINHA ेश ! " #े" / Copy of Order Forwarded to:- $ व / Revenue 2 व द / Assessee ' ( )* ु + / Concerned CIT 4 ु + - / CIT (A) . /व0 1 2 2न)*3 )* #3 45द ( द / DR, ITAT, Ahmedabad 6 1 78 9 / Guard file. By order/ द श 3 उ / 4 )* #3 45द ( द । This Order pronounced in Open Court on 29/06/2022