DCIT, Tiruppur v. M/s. Tirupur Textiles Pvt. Ltd., Tiruppur

ITA 310/CHNY/2010 | misc
Pronouncement Date: 06-08-2010

Appeal Details

RSA Number 31021714 RSA 2010
Assessee PAN AAACT7933Q
Bench Chennai
Appeal Number ITA 310/CHNY/2010
Duration Of Justice 40 year(s) 7 month(s) 5 day(s)
Appellant DCIT, Tiruppur
Respondent M/s. Tirupur Textiles Pvt. Ltd., Tiruppur
Appeal Type Income Tax Appeal
Pronouncement Date 06-08-2010
Appeal Filed By Department
Assessment Year misc
Appeal Filed On 01-01-1970
Judgment Text
IN THE INCOMETAX APPELLATE TRIBUNAL: C BENCH;CH ENNAI (BEFORE SHRI ABRAHAN P GEORGE AND SHRI GEORGE MATHAN) ITA NO.310/ MDS/2010 ASST. YEAR 2005-06 THE ACIT VS. M/S TIRUPUR TEXTILES (P) LTD . CENTRAL CIR. I TIRUPUR P.B.NO.152 TI RUPUR 641603 (PAN AAACT7933Q) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRIB.SRINIVASAN RESPONDENT BY: G.BASKAR ORDER PER ABRAHAM P.GEORGE ACCOUNTANT MEMBER SHORT ISSUE RAISED BY THE REVENUE IN THIS APPEAL I S THAT THE CIT(APPEALS) ERRED IN DELETING ADDITION OF RS.3 00 58 000/- MADE BY THE A .O BY DISALLOWING THE ADDITIONAL DEPRECIATION CLAIMED BY THE ASSESSEE U/S 32(1)(IIA) OF THE INCOME-TAX ACT 1961 IN RESPECT OF WINDMILL. 2. THE ASSESSEE ENGAGED IN THE BUSINESS OF MANUFAC TURE OF YARN AND WIND POWER GENERATION HAD SET UP A WINDMILL AND CLAIMED ADDIT IONAL DEPRECIATION THEREON WHICH WAS DISALLOWED BY THE AO. ASSESSEE ASSAILED THIS BEFO RE THE CIT(A) WHO RELYING ON THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. HI TECH ARAI LTD. (321 ITR 477 HELD THAT ASSESSEE WAS ELIGIBLE F OR SUCH ADDITIONAL DEPRECIATION. ITA NO 310/MDS/10 2 3. NOW BEFORE US THE LD. DEPARTMENTAL REPRESE NTATIVE STRONGLY SUPPORTED THE ORDER OF THE A.O. THE LD COUNSEL FOR THE ASSESSEE ON THE O THER HAND STRONGLY SUPPORTED THE ORDER OF THE CIT(A). 4. WE FIND THAT IN RESPECT OF ADDITIONAL DEPR ECIATION CLAIMED BY AN ASSESSEE EVEN WHERE THE MAIN BUSINESS OF THE ASSESSEE WAS NOT PRO DUCING OR GENERATING ELECTRICITY HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF HI TECH ARAI LTD. (SUPRA) HELD IN FAVOUR OF THE ASSESSEE. THE LD. CIT(A) HAS CORRECTLY RELI ED ON THE SAID DECISION AND CONSIDERED THE ASSESSEE TO BE ELIGIBLE FOR ADDITIONAL DEPRECIA TION. THIS DECISION WAS REITERATED BY THE HONBLE JURISDICTIONAL HIGH COURT AGAIN IN THE CASE OF CIT VS TEXMO PRECISION CASTINGS (321 ITR 481). HENCE WE FIND NO MERIT IN THE APPEAL OF THE REVENUE. IT IS THEREFORE DISMISSED. 5. IN THE RESULT APPEAL OF THE REVENUE STANDS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON 06-8-2010. SD/- (GEORGE MATHAN) SD/- (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI: 6 TH AUGUST 2010 NBR CC:THE ASSESSEE 2)THE ASSESSING OFFICER 4)THE CIT (A) 4) THE CIT 5)THE D.R 6)GUARD FILE. ITA NO 310/MDS/10 3