Amol Dicalite Ltd., Ahmedabad v. The CIT-I, Ahmedabad

ITA 795/AHD/2014 | 2009-2010
Pronouncement Date: 25-11-2014 | Result: Allowed

Appeal Details

RSA Number 79520514 RSA 2014
Bench Ahmedabad
Appeal Number ITA 795/AHD/2014
Duration Of Justice 8 month(s) 6 day(s)
Appellant Amol Dicalite Ltd., Ahmedabad
Respondent The CIT-I, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 25-11-2014
Date Of Final Hearing 07-10-2014
Next Hearing Date 07-10-2014
Assessment Year 2009-2010
Appeal Filed On 19-03-2014
Judgment Text
A IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH . .. . . .. . !' !' !' !' #$ #$ #$ #$ # ## #. .. .# ## #. . . . % % % % &' ( & ' &' ( & ' &' ( & ' &' ( & ' BEFORE S/SHRI G.C. GUPTA VICE-PRESIDENT AND N.S. SAINI ACCOUNTANT MEMBER) ITA NO.795/AHD/2014 [ASSTT.YEAR : 2009-2010] AMOL DICALITE LTD. 301 AKSHAY 53 SHRIMALI SOCIETY NAVRANGPURA AHMEDABAD. /VS. CIT-I C-WING PRATYAKSHA KAR BHAWAN AHMEDABAD. ( (( ( *+ *+ *+ *+ / APPELLANT) ( (( ( -*+ -*+ -*+ -*+ / RESPONDENT) ./ 0 1 & / ASSESSEE BY : SHRI S.N. SOPARKAR ( 0 1 & / REVENUE BY : SHRI SUBHASH BAINS CIT-DR 3 0 /4' / DATE OF HEARING : 7 TH OCTOBER 2014 567 0 /4' / DATE OF PRONOUNCEMENT : 25-11-2014 &8 / O R D E R PER G.C. GUPTA VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2009-2010 IS DIRECTED AGAINST THE OR DER OF THE CIT-I AHMEDABAD. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE EFFECTIVE GROUND OF THE APPEAL OF THE ASSESSEE ARE GROUND NO.1 AND 2 WHICH ARE REPRODUCED HEREINUNDER: 1. THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN INVO KING PROVISIONS OF SECTION 263 OF THE ACT SEEKING TO REVISE SCRUTINY A SSESSMENT U/S.143(3) OF THE ACT HOLDING IT AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE ITA NO.795/AHD/2014 -2- REVENUE. THE ORDER OF CIT DIRECTING AO TO REVISE O RDER THAT IS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF REVENU E IS UNJUST UNTENABLE AND AGAINST PRINCIPLES OF NATURAL JUSTICE THAT DESE RVES TO BE QUASHED. IT BE SO HELD NOW. 2. THE LD.CIT ERRED IN LAW AND ON FACTS IN DIRECTI NG AO TO MAKE FRESH ASSESSMENT WITH RESPECT TO GRANT OF ADDITIONAL DEPR ECIATION U/S.32(1)(IIA) OF THE ACT FOR RS.36 04 800/- CLAIMED BY THE APPELL ANT ON WIND MILL. LD. CIT FAILED TO APPRECIATE THAT AO MADE PROPER INQUIR Y AND ON VERIFICATION OF DOCUMENTS SUBMITTED BY THE APPELLANT ACCEPTED CL AIM OF THE ADDITIONAL DEPRECIATION. THE ERRONEOUS ORDER OF LD.CIT OUGHT TO BE QUASHED. IT BE SO HELD NOW. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ISSUE OF GRANT OF ADDITIONAL DEPRECIATION ON WIND MILL IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE MADRAS HIGH COURT IN TH E CASE OF VTM LTD. 187 TAXMAN 319 WHICH WAS FOLLOWED BY THE HONBLE GUJAR AT HIGH COURT IN DIAMINES & CHEMICALS LTD. 42 TAXMANN.COM 193 AND A LSO THE DECISION OF THE ITAT AHMEDABAD BENCH IN HEAVY METAL & TUBES LTD. IN ITA NO.1951/AHD/2011 & CO NO.232/AHD/2011. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE ISSUE OF GRANT OF ADDITIONAL DEPRECIATION WAS DULY CONSIDERED BY THE AO AND DETAILED INQUIRY WAS MADE BY HIM AT THE ASSESSMENT STAGE. THE LEARNED CIT-DR HAS OPPOSED T HE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE RELIED ON FOL LOWING SERIES OF DECISIONS IN SUPPORT OF THE CASE OF THE REVENUE. 1. CIT VS. INFOSYS TECHNOLOGIES LTD. 17 TAXMANN.COM 20 3 (KAR) 2. CIT VS. JAWAHAR BHATTACHARJEE 24 TAXMANN.COM 215 ( GAUH) 3. CIT VS. ASHOK LOGANI 11 TAXMANN.COM 208 (DEL) 4. SHRI JITENDRA K. DESAI VS. CIT ITA NO.1210/AHD/201 0 ITAT AHMEDABAD ORDER DATED 27.7.2012 5. ASMAN INVESTMENT LTD. VS. DCIT ITA NO.1262/AHD/201 1 ITAT AHMEDABAD ORDER DATED 6.7.2012. 6. CIT VS. USHA INTERNATINAL LTD. 348 ITR 485 (DEL) 7. BHARAT OVERSEAS BANK LTD. CIT 152 TTJ 546 (CHENNAI ) 8. MALABAR INDUSTRIES LTD. VS. CIT 243 ITR 23 (SC) HE RELIED ON THE ORDER OF THE CIT. ITA NO.795/AHD/2014 -3- 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT AND ALSO VARIOUS DECISIONS RELIED UPON BY THE PARTIES. WE FIND THAT THE ISSUE OF GRANT OF ADDITIONAL DEPRECIATION UNDER SECTION 32(1)(IIA) OF THE ACT ON WIND MILL IS COVERED IN FAVOUR OF THE ASSESSEE W ITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN DIAMINES & CHE MICALS LTD.(SUPRA) WHICH HAS FOLLOWED THE DECISION OF THE HONBLE MADRAS HIG H COURT IN VTM LTD. (SUPRA). THE ISSUE BEING COVERED IN FAVOUR OF THE ASSESSEE AND THE ASSESSEE BEING ENTITLED FOR ADDITIONAL DEPRECIATION ON WIND MILL WE HOLD THAT THE ORDER OF THE ASSESSMENT COULD NOT BE SAID TO BE ERRONEOUS AN D PREJUDICIAL TO THE INTEREST OF THE REVENUE AND ACCORDINGLY THE ORDER PASSED U NDER SECTION 263 OF THE ACT COULD NOT BE SUSTAINED AND IS CANCELLED. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## # . .. . # ## # . . . . % % % % /N.S.SAINI) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD