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2023 (2) TMI 465 - HC - Income TaxMaintainability of appeals on low tax effect - Maintainability of these appeals and specifically whether these appeals fall under the exception clause of Circular No. 3 of 2018 issued by the CBDT - HELD THAT:- From perusal of the entire record, it is crystal clear that though the revenue-Auditor has made objection, however, nowhere on record it transpires that the revenue objection was accepted. Also as per the revenue own circular No. 3/2018 CBDT has engrafted certain exceptions and at paragraph 10(c) it has been specifically provided that any appeal even below monetary limit can be entertained provided the audit objection has been accepted by the revenue - even after opportunities given to the learned standing counsel for revenue, he was unable to produce a single chit of paper to show that audit objection has been accepted by the revenue. Thus, since the tax effect in both the cases, the monetary limit is much below the ceiling as prescribed in the Circular No. 3/2018; both these appeals are not maintainable and deserves to be quashed in limine. Disallowance of claim of additional depreciation - disallowance made on the ground that additional depreciation under Section 32(1)(iia) of the Act can only be claimed in the first year of use of the new machinery and the additional depreciation cannot be taken in the subsequent year - ITAT deleted the disallowance - HELD THAT:- ITAT in the Impugned Judgment has correctly allowed the claim of additional depreciation of the respondent made in the subsequent year by relying on the judgment of M/s. Brakes India Limited [2017 (4) TMI 511 - MADRAS HIGH COURT] to hold that the additional depreciation amount, claimed by Respondent in the subsequent year of first usage of new machinery, cannot be disallowed by the assessing officer -. As in Rittal India Pvt. Ltd. case [2016 (1) TMI 81 - KARNATAKA HIGH COURT] wherein the High Court held in favour of the assessee that additional depreciation can be availed even in the subsequent year to the first year when the machinery was put to use. additional depreciation, in terms of Section 32 (1) (iia), can be availed in subsequent assessment year to the assessment year in which the machinery was first put to use. See Shri T.P. Textiles Private Limited [2017 (3) TMI 739 - MADRAS HIGH COURT] Thus both questions of law is decided in favour of Assessee and both the appeals deserve to be dismissed on both counts. Firstly, on the question of maintainability; as the tax effect of both the cases are much below the monetary limit fixed by the CBDT and secondly, even on merit, in view of the judgment passed by the Madras High Court and upheld by the Hon’ble Apex Court as discussed hereinabove.
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