The ACIT, Circle-2(1), Vijayawada v. M/s Maha Maruthi Logistics Pvt. Ltd., Vijayawada

ITA 329/VIZ/2010 | 2002-2003
Pronouncement Date: 16-08-2010 | Result: Allowed

Appeal Details

RSA Number 32925314 RSA 2010
Assessee PAN AAECM6209J
Bench Visakhapatnam
Appeal Number ITA 329/VIZ/2010
Duration Of Justice 2 month(s) 15 day(s)
Appellant The ACIT, Circle-2(1), Vijayawada
Respondent M/s Maha Maruthi Logistics Pvt. Ltd., Vijayawada
Appeal Type Income Tax Appeal
Pronouncement Date 16-08-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 16-08-2010
Assessment Year 2002-2003
Appeal Filed On 01-06-2010
Judgment Text
ITA NO.320/VIZAG/2010 MAHA MARUTHI LOGISTICS (P)LTD. VIJAYAWADA PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 329/VIZAG/2010 ASSESSMENT YEAR: 2002-03 ASSTT. COMMISSIONER OF INCOME TAX CIRCLE- 2(1) VIJAYAWADA VS. M/S MAHA MARUTHI LOGISTICS (P) LTD. VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO:AAECM 6209 J APPELLANT BY: SHRI SUBRATA SARKAR CIT(DR) RESPONDENT BY: N O N E ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DATED 29-3-2010 PASSED BY LEARNED CIT (A) VIJAYAWADA AND IT RELATES TO THE ASSESSMENT YEAR 2007-08. NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENCE WE PROCEED TO DISPOSE THE APPEAL EX-PARTE QU A THE ASSESSEE. 2. THE GROUNDS OF THE APPEAL OF THE REVENUE GIVE RI SE TO A SINGLE ISSUE VIZ. WHETHER THE LEARNED CIT (A) IS RIGHT IN LAW I N ALLOWING DEPRECIATION AT ENHANCED RATE OF 40% IN RESPECT OF REACH STACKERS A ND MOBILE CRANES. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. THE ASSESSEES CLAIM OF HIGHER RATE OF DEPRECIATION WHICH IS APPL ICABLE TO MOTOR LORRIES ON REACH STACKERS AND MOBILE CRANES WAS REJECTED BY TH E ASSESSING OFFICER. IN THE APPEAL FILED BY THE ASSESSEE THE LEARNED CIT ( A) ALLOWED THE CLAIM OF THE ASSESSEE. HENCE THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENT ATIVE IN THIS REGARD. IT WAS BROUGHT TO OUR NOTICE THAT THE ASSES SEE COMPANY WAS FORMED ITA NO.320/VIZAG/2010 MAHA MARUTHI LOGISTICS (P)LTD. VIJAYAWADA PAGE 2 OF 3 BY CONVERTING A PARTNERSHIP FIRM NAMED MARUTHI TRA NSPORT INTO A PRIVATE LIMITED COMPANY. IN THE HANDS OF THE PARTNERSHIP FIR M M/S MARUTHI TRANSPORT AN IDENTICAL ISSUE CAME FOR CONSIDERATIO N OF THIS BENCH AND THIS BENCH HAS SET ASIDE THE SAID ISSUE TO THE FILE OF T HE ASSESSING OFFICER WITH THE FOLLOWING OBSERVATIONS VIDE ITS ORDER DATED 22 ND JULY 2010 IN ITA NOS.322 & 323/VIZAG/2009: 4. DURING THE COURSE OF HEARING LEARNED AUTHORISE D REPRESENTATIVE HEAVILY PLACED RELIANCE ON THE INSTR UCTION NO.617 DATED 13-09-1973 AND INSTRUCTION NO.1641 ISSU ED BY THE CBDT TO CONTEND THAT THE TWO TYPES OF VEHICLES PURCHASED BY THE ASSESSEE VIZ. THE REACH STACKER AND MOBILE CRANE BEING USED FOR LIFTING OF WEIGHTS ARE ELIGIBLE FOR DEPRECIATION AT HIGHER RATES. THE LEARNED AUTHORISED REPRESENTA TIVE ALSO PLACED PHOTOS OF THE SAID VEHICLES. HOWEVER LEARNE D DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE SAID CONTENTION OF THE ASSESSEE NEEDS VERIFICATION BY TH E ASSESSING OFFICER WITH THE HELP OF TECHNICAL PERSONNEL. 5. BOTH THE PARTIES AGREED THAT THE MATTER MAY BE RESTORED TO THE FILE OF ASSESSING OFFICER FOR FRESH EXAMINAT ION OF THE ISSUE IN THE LIGHT OF THE PURPOSE AND USAGE OF THE VEHICLES TECHNICALITIES OF VEHICLES ETC. WE ARE ATTACHING H EREWITH THE PHOTOS OF THE TWO VEHICLES AS ANNEXURE A AND B TO T HIS ORDER. IN VIEW OF THE FOREGOING WE AGREE WITH THE SUBMISSI ONS MADE BY BOTH THE PARTIES AND ACCORDINGLY SET ASIDE THE ORDERS OF LEARNED CIT(A) ON THIS ISSUE IN THE ASSESSMENT Y EARS 2005-06 AND 2006-07 AND RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH EXAMINATION. SO FAR AS THE APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2004 -05 IS CONCERNED THE ORDER OF LEARNED CIT IS MODIFIED TO THE EXTENT STATED ABOVE. 6. ANOTHER ISSUE THAT WAS AGITATED IS WHETHER THE DEPRECIATION COULD BE DISALLOWED FOR WANT OF REGIST RATION UNDER THE MOTOR VEHICLE ACT. IT HAS BEEN HELD BY VA RIOUS HIGH COURT THAT THE ABSENCE OF REGISTRATION OF VEHICLES UNDER THE MOTOR VEHICLE ACT CANNOT BE A GROUND FOR DENYING DEPRECIATION. IN THIS CONNECTION REFERENCE MAY BE MADE TO THE FOLLOWING CASE LAW: I) CIT VS. SALKIA TRANSPORT ASSOCIATES (1983) 143 ITR3 9 (CAL) II) CIT VS. BASTI SUGAR MILLS CO. LTD. (2002) 257 ITR 88 (DEL) ITA NO.320/VIZAG/2010 MAHA MARUTHI LOGISTICS (P)LTD. VIJAYAWADA PAGE 3 OF 3 III) ANIL BULK CARRIERS (P) LTD. VS. CIT (2005) 276 ITR 625 (ALL). 5. CONSISTENT WITH THE VIEW TAKEN IN THE ABOVE CITE D CASES WE SET ASIDE THIS MATTER ALSO TO THE FILE OF THE ASSESSING OFFIC ER WITH A DIRECTION TO CONSIDER THE ISSUE AFRESH IN ACCORDANCE WITH THE DI RECTIONS GIVEN IN THE ABOVE CITED CASES. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS TREAT ED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 16/08/2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 16 TH AUGUST 2010 COPY TO 1 THE ASSTT. COMMISSIONER OF INCOME TAX CIRCLE-2(1) CENTRAL REVENUES BUILDINGS MG ROAD VIJAYAWADA 520002 2 M/S MAHA MARUTHI LOGISTICS PVT. LTD. 42-4-61/1A RAMAKRISHNAPURAM VIJAYAWADA 520 011 3 4. THE CIT VIJAYAWADA THE CIT(A) VIJAYAWADA 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM