The ACIT,(OSD)-I,Range-4,, Ahmedabad v. Marwar Hotels Ltd.,, Ahmedabad

ITA 2859/AHD/2010 | 2004-2005
Pronouncement Date: 04-04-2014 | Result: Dismissed

Appeal Details

RSA Number 285920514 RSA 2010
Assessee PAN AAACM8009N
Bench Ahmedabad
Appeal Number ITA 2859/AHD/2010
Duration Of Justice 3 year(s) 5 month(s) 23 day(s)
Appellant The ACIT,(OSD)-I,Range-4,, Ahmedabad
Respondent Marwar Hotels Ltd.,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 04-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 04-04-2014
Date Of Final Hearing 14-03-2014
Next Hearing Date 14-03-2014
Assessment Year 2004-2005
Appeal Filed On 12-10-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AND SHRI T.R. MEENA ACCOUNTANT MEMBER .. ! ! ! ! ITA NO. 2859/AHD/2010 ASSESSMENT YEAR : 2004-05 THE ACIT(OSD)-I RANGE-4 AHMEDABAD. NAVJIVAN TRUST BLDG. OFF. ASHRAM ROAD AHMADABAD. V/S . MARWAR HOTELS LTD. AIRPORT ROAD HANSOL AHMEDABAD. PAN NO. A AA CM8009N (APPELLANT) .. (RESPONDENT) '# $ % / BY APPELLANT SHRI J. P. JHANGID SR. D.R. &''# $ % /BY RESPONDENT SHRI VIJAY RANJAN A.R. () $ /DATE OF HEARING 14.03.2014 *+ $ /DATE OF PRONOUNCEMENT 04.04.2014 O R D E R PER : SHRI T.R.MEENA ACCOUNTANT MEMBER THIS IS AN APPEAL AT THE BEHEST OF REVENUE WHICH HA S EMANATED FROM THE ORDER OF CIT(A)-I AHMEDABAD DATED 06.08.2010 FOR ASSESSMENT YEAR 2004-05. THE SOLE GROUND OF APPEAL IS AGAINST ELEC TRICAL INSTALLATIONS USED IN HOTELS ARE ELIGIBLE FOR DEPRECIATION @ 25%. 2. THE A.O. OBSERVED THAT THE ASSESSEE HAS CLAIMED DEPRECIATION ON ELECTRICAL INSTALLATION @ 25% BUT AS PER THE RATE P ROVIDED IN THE ACT FOR ITA NO. 2859/AHD/2010 ACIT(OSD)-I VS. MARWAR HOTELS LTD. A.Y. 04-05 PAGE 2 ELECTRICAL INSTALLATION @ 15%. THUS HE DISALLOWED EXCESS DEPRECIATION CLAIMED BY THE ASSESSEE @ 15%. 3. BEING AGGRIEVED BY THE ORDER OF THE A.O. THE AS SESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) WHO HAD ALLOWED THE APPEAL IN FAVOUR OF THE ASSESSEE BY OBSERVING AS UNDER: 4. BEFORE ME THE APPELLANT HAS ALSO SUBMITTED REV ISED CHART OF DEPRECIATION WHEREIN IT HAS BIFURCATED ELECTRIC INS TALLATION BEING PLANT & MACHINERY ELIGIBLE FOR DEPRECIATION @ 25% AND ELECT RIC FITTINGS OTHER THAN PLANT & MACHINERY ELIGIBLE FOR DEPRECIATION 15%. A S PER REVISED CHART THE APPELLANT IS ENTITLED TO DEPRECIATION AT RS.91 02 326/- AS AGAINST ORIGINAL CLAIM OF APPELLANT FOR RS.1 05 79 094/- AND HAS ALTERNATIVELY SUBMITTED THAT DISALLOWANCE CAN BE MADE ONLY FOR RS.14 76 768/- AS AGAINST DISALLOWANCE MADE BY ASSESSING OFFICER FOR RS.33 85 310/-. RESPECTFULLY FOLLOWING THE DECISION OF HON. ITAT IN APPELLANTS OWN CASE ORDER OF MY PREDECESSOR CIT(A) AND AFTER CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE APPELLANTS CASE APPELLANT IS ENTITLED TO DEPR ECIATION @ 25% ON ELECTRIC INSTALLATION AND DISALLOWANCE IS REQUIRED TO BE RESTRICTED TO THE BLOCK OF ELECTRIC FITTINGS AND CONSIDERING SAME DI SALLOWANCE IS RESTRICTED TO RS.14 76 768/- AS PER REVISED CHART AND BALANCE AMOUNT OF RS.19 08 542/- IS THEREFORE DELETED. THE GROUND OF APPEAL IS ALL OWED ACCORDINGLY. 4. NOW THE REVENUE IS BEFORE US. LD. SR. D.R. SUP PORTED THE ORDER OF THE A.O. HOWEVER LD. A.R. ARGUED THAT IN ASSESSEES O WN CASE IN ITA NO.881/AHD/2006 FOR A.Y. 2002-03 THE HONBLE D BE NCH HAS CONSIDERED THE IDENTICAL ISSUE ALLOWED THE DEPRECIATION ON ELECTRI CAL INSTALLATION BEING PLANT AND MACHINERY @ 25%. THEREFORE SAME MAY BE ALLOWE D IN THIS YEAR. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE CO-ORDINATE D BENCH IN ASSESSEES O WN CASE IN A.Y. 02-03 HAD ITA NO. 2859/AHD/2010 ACIT(OSD)-I VS. MARWAR HOTELS LTD. A.Y. 04-05 PAGE 3 ALLOWED THE DEPRECIATION @ 25% ON ELECTRICAL INSTAL LATION IN CASE OF HOTEL BUSINESS. BY RESPECTFULLY FOLLOWING THE ORDER OF C O-ORDINATE BENCH ON IDENTICAL FACTS WE CONFIRM THE ORDER OF THE CIT(A) . 6. IN THE RESULT REVENUES APPEAL IS DISMISSED THIS ORDER PRONOUNCED IN OPEN COURT ON 04/04/2014 SD/- SD/- ( MUKUL KR. SHRAWAT) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER TRUE COPY S.K.SINHA - - - - $ $$ $ &. &. &. &. /. /. /. /. / COPY OF ORDER FORWARDED TO:- 1. '# / APPELLANT 2. &''# / RESPONDENT 3. 33 4 / CONCERNED CIT 4. 4- / CIT (A) 5. .89 &( / DR ITAT AHMEDABAD 6. 9;< => / GUARD FILE. BY ORDER/ - ?/ 3A !