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2015 (6) TMI 447 - ITAT HYDERABAD

2015 (6) TMI 447 - ITAT HYDERABAD - TMI - Rectification order passed under section 154 - Excess depreciation allowed on electrical installation at 15%., Excess depreciation allowed on office equipment at 15%,Payment of contributions of P.F./ESI beyond the due date remain to be disallowed and Income arising out of the development agreement with Vansh Builders taxed as capital gains instead of business income - additions made by the A.O. on the said issues by way of rectification under section 154 .....

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ecision or direction on these issues. The order passed by the A.O. on 06.12.2012 giving effect to the order of the Tribunal thus did not involve these issues as the scope of the said order was limited to give effect to the order of the Tribunal which did not involve these issues at all. It therefore cannot be said, by any stretch of imagination, that there was any mistake in the order of the A.O. dated 06.12.2012 on these issues calling for any rectification under section 154 and this position c .....

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Appellant : Mr D Sudhakar Rao For the Respondent : Mr K C Devdas ORDER Per P M Jagtap: This appeal is preferred by the Revenue against the order of the Ld. CIT(A)-II, Hyderabad dated 01.10.2013 whereby she deleted the additions made by the A.O. to the total income of the assessee by way of rectification order passed under section 154 of the I.T. Act, 1961. 2. The assessee in the present case is a limited company which is engaged in the business of manufacturing and selling of copper products, t .....

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of the opinion that the order passed by the A.O. under section 143(3) has the following errors. (i) "Excess depreciation allowed on electrical installation at 15%. (ii) Excess depreciation allowed on office equipment at 15%. (iii) Payment of contributions of P.F./ESI beyond the due date remain to be disallowed. (iv) Income arising out of the development agreement with Vansh Builders taxed as capital gains instead of business income." 3. The Ld. CIT therefore issued a notice under secti .....

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the income arising out of development agreement with Vansh Builders in the hands of the assessee as business income as against capital gains. Accordingly, order under section 143(3) read with section 263 was passed by the A.O. on 14.06.2012 bringing to tax the said income in the hands of the assessee as business income. Meanwhile, the appeal filed by the assessee against the order passed by the Ld. CIT under section 263 came to be disposed of by the Tribunal vide order dated 06.11.2012 passed i .....

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the A.O. vide order dated 28.12.2012 passed under section 154 duly rectified the mistake committed by him by making the addition on account of short term capital gain twice. While passing the said order, he also made rectification on account of the following issues which, according to him, also constituted mistakes in the order dated 06.12.2012. Sl.No. Nature of Additions Amount in Rs. i. Disallowance of additional depreciation claimed under I.T. Act on Plant and Machinery 8,44,715 ii. Disallowa .....

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rder of the A.O. dated 06.12.2012 calling for any rectification as done by the A.O. vide order passed under section 154 of the Act. "Coming to the issue of additional depreciation on plant and machinery, it was explained that the addition to plant and machinery of ₹ 84,4 7,149 1were made after 30.09.2006 during the A.Y. 2007-08. Accordingly, the depreciation at the rate of 10% of ₹ 84,47,149 I - was claimed in A. Y. 200708 and the balance at the rate of 10% of ₹ 8,44,715/- .....

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the rate of 10%. (b) The second category included in plant and machinery III(8)(E) which includes condensers, automatic power cut device, capacitors etc., entitled for depreciation at the rate of 80%. (c) All other electrical equipment other than the above two categories classified under the head plant and machinery. Part III(1) entitled for depreciation at the rate of 15%. It was explained by the appellant that the depreciation in this case was claimed on electric transformers, gear boxes heav .....

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rdingly, the additions made by the A.O. on the said issues by way of rectification under section 154 were deleted by the Ld. CIT(A) allowing the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A), the Revenue has preferred this appeal before the Tribunal. 6. We have heard both the parties and also perused the relevant material on record. It is observed that the submissions made on behalf of the assessee before the Ld. CIT(A), which has been reiterated by the Ld. Counsel for the ass .....

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