DCIT, Pune v. Shri Satish Gopalrao Joshi, Pune

ITA 738/PUN/2010 | 2006-2007
Pronouncement Date: 24-02-2012 | Result: Dismissed

Appeal Details

RSA Number 73824514 RSA 2010
Assessee PAN ACAPJ8384N
Bench Pune
Appeal Number ITA 738/PUN/2010
Duration Of Justice 1 year(s) 9 month(s) 10 day(s)
Appellant DCIT, Pune
Respondent Shri Satish Gopalrao Joshi, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 24-02-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 24-02-2012
Date Of Final Hearing 09-02-2012
Next Hearing Date 09-02-2012
Assessment Year 2006-2007
Appeal Filed On 14-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D. KARUNAKARA RAO (AM) ITA NO.738/PN/2010 (ASSTT. YEAR : 2006-07) DY. COMMISSIONER OF INCOME TAX ... APPELLANT CIRCLE 3 PUNE V. SHRI. SATISH GOPALRAO JOSI RESPONDENT F-11 PLOT NO. 4/1 MIDC PIMPRI PUNE 411 012 PAN: ACAPJ8384N C. O.NO.39/PN/2011 (ARISING OUT OF ITA NO. 738/PN/2010 ) (ASSTT . YEAR : 2006-07) SHRI. SATISH GOPALRAO JOSHI CROSS OBJECTOR F-11 PLOT NO. 4/1 MIDC PIMPRI PUNE 411 012 PAN: ACAPJ8384N V. DY. COMMISSIONER OF INCOME TAX ... RESPONDENT CIRCLE 3 PUNE ASSESSEE BY : SHRI. M.K. KULKARNI DEPARTMENT BY : MS. NEERA MALHOTRA DATE OF HEARING : 09-02-12 DATE OF PRONOUNCEMENT : -02-12 ORDER PER I.C. SUDHIR JM THE REVENUE HAS RAISED FOLLOWING ISSUE IN THE APP EAL : WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD CIT(A) WAS JUSTIFIED IN NOT TREATING THE PA TTERNS AND DIES AS DEPRECIABLE ASSETS ON THE LINES OF HONBLE ITAT BANGLORES DECISION IN THE CASE OF B.P.L. RERIGERATION LTD. V S ACIT (2005) 272 ITR (AT) 47 WHEREIN MOULDS WERE HELD TO BE A KIND OF DIES? ITA . NO 7384/PN/2010 & C.O.39/PN/2011 SATISH GOPALRAO JOSHI \ A.Y.2006-07 PAGE OF 4 2 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) WAS JUSTIFIED IN NOT APPRECIAT ING THAT THE PATTERNS AND DIES ARE PART AND PARCEL OF PLANT AND MACHINERY AND EXPENDITURE INCURRED ON THESE IS A CAPITAL EXPENDIT URE? 2. AT THE OUTSET OF HEARING THE LD. A.R. POINTED O UT THAT THE ISSUES RAISED IN THE PRESENT APPEAL ARE FULLY COVERED BY T HE DECISION OF PUNE BENCH OF THE TRIBUNAL IN THE CASE OF SISTER OF THE ASSESSEE I.E. ACIT VS. M/S. ANANT ENTERPRISES ITA NO. 261/PN/09 (A.Y. 200 5-06) )ORDER DATED 16 TH JULY 2010 AND ACIT VS. ANANT ENTERPRISES ITA NO. 285/PN/10 (A.Y. 2006-07) ORDER DATED 30 TH JUNE 2011. 3. THE LD. D.R. HAS NOT REBUTTED THE ABOVE SUBMISSI ON OF THE LD. A.R. BUT HAS PLACED RELIANCE ON THE ASSESSMENT ORDER IN SUPPORT OF THE APPEAL. 4. WE FIND THAT ISSUES HAVE BEEN DECIDED IN FAVOUR OF THE ASSESSEE ON IDENTICAL ISSUE IN THE CASE OF M/S. ANANT ENTERPRIS ES (SISTER CONCERN OF THE ASSESSEE). THE RELEVANT PARA NO. 5 OF THE ORDE R DATED 16 TH JULY 2001 OF THE TRIBUNAL FOR THE A.Y. 2005-06 IS BEING REPRO DUCED HEREUNDER FOR A READY REFERENCE : 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND FOUND FROM RECORD THAT ASSESSEE WAS USING PATTERN AND DY ES IN THE MANUFACTURING ACTIVITY CARRIED OUT BY HIM. DURING ALUMINIUM DYE CASTING PROCESS THE DYE WAS ALLOTTED ON THE MACHIN E IT IS HEATED UP TO A TEMPERATURE OF 200 DEGREE CENTIGRADE AND THEREAFTER MOULTEN LIQUID METAL OF 750 DEGREE CENTIGRADE IS P OURED IN THE DYE CASTING WHERE IT GETS HEATED AND FORMS A SOLID CAST ING. THIS PROCESS IS REPEATED FOR EACH SHOT TO PRODUCE CASTI NG DURING THE CASTING PRODUCTION. THE DYES REPEATEDLY COMES ACRO SS WITH THERMAL SHOCKS DUE TO HOT METAL POURING AND SUBSEQUENT CY CLE. THUS THE LIFE OF DYES IS SHORT ON ACCOUNT OF CONTINUOUS REPE ATED THERMAL ITA . NO 7384/PN/2010 & C.O.39/PN/2011 SATISH GOPALRAO JOSHI \ A.Y.2006-07 PAGE OF 4 3 SHOCKS FATIGUE FAILURE ALTERATION IN DESIGN AS P ER CUSTOMERS REQUIREMENT EXCESSIVE POURING BREAKAGE OF CASTING S ETC. EVEN THE ASSESSING OFFICER HAS ALSO OBSERVED THAT SUCH E XPENDITURE WAS RECURRING IN NATURE. THE CIT(A) AFTER GIVING DETAI LED OBSERVATION AT PARA 4 5 6 AND 7 OBSERVED THAT LIFE OF DYES WAS SH ORT THE SAME IS THEREFORE ELIGIBLE FOR DEDUCTION AS REVENUE EXPEND ITURE. THIS FINDING HAS NOT BEEN CONTROVERTED BY THE DEPARTMENT . THE FACTS IN CASE OF BPL REFRIGERATION LTD. 272 ITR 47 ARE DISTI NGUISHABLE INSOFAR AS MOULDS WERE OF SHORTER LIFE AND ASSESSEE WAS NOT OBTAINING ANY ENDURING BENEFIT OUT OF IT IN THE INSTANT CASE BEFO RE US. 5. FOLLOWING THE ABOVE FINDING ON THE ISSUE WE DO NOT FIND REASON TO INTERFERE WITH THE FIRST APPELLATE ORDER IN THIS RE GARD. THE SAME IS UPHELD. THE ISSUES ARE THUS DECIDED AGAINST THE REVENUE. 6. IN RESULT APPEAL IS DISMISSED. C.O. NO. 39/PN/2011 7. THE CROSS OBJECTION HAS BEEN PREFERRED IN SUPPOR T OF THE FIRST APPELLATE ORDER ON THE ISSUE QUESTIONED BY THE REVE NUE. IN VIEW OF OUR ABOVE FINDING IN THE APPEAL THE CROSS OBJECTION HA S BECOME INFRUCTUOUS. THE SAME IS DISMISSED AS SUCH. 8. IN SUMMARY THE APPEAL AND CROSS OBJECTION ARE D ISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 24THF EBRUARY 2012. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE DATED THE 24TH FEBRUARY 2012 US ITA . NO 7384/PN/2010 & C.O.39/PN/2011 SATISH GOPALRAO JOSHI \ A.Y.2006-07 PAGE OF 4 4 COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT -V PUNE 4. THE CIT(A)-V PUNE 5. THE D.R. B BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE