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The DCIT Versus M/s. LK. India Pvt. Ltd,

2015 (6) TMI 310 - ITAT AHMEDABAD

Depreciation on moulds - @ 30% OR 15% - Held that:- In the given facts and circumstances, Tribunal Judgment in the case of BPL Refrigeration Ltd. [2004 (3) TMI 317 - ITAT BANGALORE-A ] and Kinetic Honda Motor Ltd. (2000 (3) TMI 201 - ITAT PUNE) are applicable to the assessee's case, respectfully following them, we uphold order of the CIT(A) allowing higher depreciation at the rate of 40% on moulds. . We also find that in A.Y. 2003-04 and 2007-08 similar issue was decided by the Co-ordinate Benc .....

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bed due date, and following the decision of Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT), we are of the view that the AO was justified in disallowing the belated payments and thus this ground of Revenue is allowed. - Decided against assesse. - ITA No. 2714/Ahd/2011 - Dated:- 13-3-2015 - Shri Mukul Kr. Shrawat And Shri Anil Chaturvedi JJ. For the Appellant : Shri Roop Chand, Sr. D.R. For the Respondent : Shri M.K. Swadi .....

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selected for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order dated 23-12- 2009 and the total income before set off of carry forward losses was determined at ₹ 92,19,134/-. Aggrieved by the order of AO, Assessee carried the matter before Ld. CIT(A), who vide order dated 04-08-20011 allowed the appeal of the assessee. Aggrieved by the aforesaid order of Ld. CIT(A), Revenue is now in appeal before us and has filed the following grounds: 1. On the facts and in the circ .....

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nic goods are not known as a rubber and plastic goods factories. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(Appeals) erred in deleting the addition of ₹ 2,62,184/- made u/s.36(i)(va) r.w.s. 2(24)(x) on account of disallowance of Employee's Contribution to Provident Fund not paid within the due date (including the grace period) ignoring the fact that as per provisions of section 2(24)(x) of the Act the employees' contribution is first treated as inco .....

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the course of assessment proceedings, AO noticed that Assessee had claimed depreciation on dies and moulds at 30% on the ground that it was involved in the manufacturing of plastic goods and was therefore eligible for higher depreciation, AO on the other hand was of the view that the final products of the company are electrical products and part of which comprises of plastic and other part being electrical circuits made up of copper and aluminum. He was of the view that the benefit of 30% depre .....

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e excess depreciation worked out by him at ₹ 78,91,350/-. Aggrieved by the order of AO, Assessee carried the matter before Ld. CIT(A). Ld. CIT(A) by following the decision of Hon ble ITAT in assessee s own case, allowed the appeal of the assessee by holding as under:- 2. First Ground of appeal is regarding disallowance of depreciation of ₹ 78,91,350/- on Dies and Moulds. As rightly pointed out by the appellant, this ground of appeal is covered by Hon ble ITAT s decision in appellant .....

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is directed to be allowed and disallowance of ₹ 78,91,350/- is cancelled. 5. Aggrieved by the order of Ld. CIT(A), Revenue is now in appeal before us. 6. Before us, Ld. DR relied on the order of AO. On the other hand, Ld. AR reiterated the submissions made before AO and Ld. CIT(A) and further submitted that on identical facts the asssesse has been allowed depreciation at 30% in A.Y. 2001-02 to 2004-05. He also placed on record the copy of the aforesaid order. He thus supported the order o .....

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. Before me, the appellant has reiterated what had been submitted before the AO. In addition, it has been stated that the principle raw material for manufacturing these goods in the form of plastic granules. The plastic granules are loaded into ejection moulding machines. These machines are general purpose plastic processing machines. The granules are converted into liquid form and then the same are given a definite shape through different kinds of ejection moulds, dyes and tools. These plastic .....

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AO is that the end product manufactured by the appellant are not plastic product and plastic is merely a component of the electrical and electronic items manufactured by the company. It is observed that the basis of classification adopted by the AO is against reason. Hon 'ble ITAT Bangalore have held in the case of BPL Sanyo Utilities and Appliance Limited which observations have been quoted in the case of BPL Refrigeration Ltd. (supra) that "once the moulds are used for manufacture of .....

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ircumstances, Madras High Court's judgment in the case of CIT Vs. Falcon Wires P. Ltd., (supra) is not applicable to the facts of the assessee's case, in our view, Tribunal Judgment in the case of BPL Refrigeration Ltd. and Kinetic Honda Motor Ltd. (supra) are applicable to the assessee's case, respectfully following them, we uphold order of the CIT(A) allowing higher depreciation at the rate of 40% on moulds. 8. We also find that in A.Y. 2003-04 and 2007-08 similar issue was decided .....

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bution to provident fund. 9. During the course of assessment proceedings, AO noticed that Employee s contribution to provident fund for the month of August and October, 2005 was paid after the prescribed due dates. AO was of the view that the case of delay in depositing the employees contribution in P.F. account beyond the due dates are covered by s. 36(1)(va) r.w.s. 2(24)(x) and are therefore not allowable. He accordingly made an addition of ₹ 2,62,184/-. Aggrieved by the order of AO, Ass .....

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M N Chari (2009) 310 ITR 445 (Kar) -Kuber Hings (P) Ltd ITO (2009) 120 TTJ 284 (Delhi) -Fluid Air (India) Ltd v DCIT (1997) 63 ITD 182 (Mum) -Madras Radiators and Pressings Ltd v DCIT (1996) 59 ITD 515 (Mad)/(1996) 56 TTJ (Mad) 662 3.2. I have considered the matter. Since employees contributions to PF were paid before due date of filing of return, disallowance of ₹ 2,62,184/- is cancelled. Reliance is placed on Hon ble ITAT, Ahmedabad s decision in ITA No. 2608/Ahd/2008 in the case of Guj .....

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