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2016 (6) TMI 780 - AT - Income TaxAdditional Depreciation claim - engagement or non engagement in activity of "production" - assessee is engaged in designing of the magazines, procurement of raw material such as paper, ink, chemicals, etc, the printing, binding and packing of magazines - Held that:- We notice that the Assessing Officer has himself mentioned in the assessment order that the assessee was involved in the business of manufacturing of greetings, magazines, envelopes, etc, and, therefore, the Assessing Officer could not have taken a contrary view while dealing with the issue of allowability of depreciation. It is further noted by us that the hon'ble Delhi High Court in the case of Delhi Press Patra Prakashan Ltd. (2013 (6) TMI 71 - DELHI HIGH COURT), has dealt with this issue at length for holding that the aforesaid activity amount to manufacturing. It has been held that printing of greetings cards on paper amount to manufacturing a new and marketable article, as a distinct product comes into existence. It was further held that it is not necessary that an industrial undertaking must manufacture a commercially new product. It was further held that, in any case, this activity shall amount to "production". As per section 32, an undertaking, engaged in "manufacturing" or "production" shall be eligible to claim additional depreciation. Thus, in view of this, the controversy becomes narrower. Therefore, the assessee is eligible for the benefit of depreciation, as it is undisputedly engaged in activity of "production". - Decided in favour of assessee
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