Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (9) TMI 1298

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... various rates - Held that:- As regards the depreciation on Cylinder, valves & regulators, the learned CIT(A) has allowed depreciation @ 80% in respect of gas cylinders including valves and regulators. He observed that the assessee had claimed depreciation on CO2 gas plant and has not restricted it to the cylinders valves and regulators. While allowing depreciation on these assets, the ld. CIT(A) has considered clause (x) of sub-clause (viii) of clause (3) )Part A. The learned DR could not be able to rebut the findings reached by the learned CIT(A) in the impugned order. We, therefore, find no material on record to interfere with the order of ld. CIT(A) on this count. As far as the depreciation on water treatment plant is concerned, the AO restricted the depreciation to 25% observing that the rate claimed by assessee is applicable in the case of effluent Treatment Plant and the assessee is not an infrastructure company u/s. 80IA. The learned CIT(A) has examined the issue in detail and allowed depreciation on this asset at the rate of 80% after considering the note No. 4 given below the depreciation chart in the Rules and has categorically observed that water treatment plant refe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ial before us to contradict the findings of the learned CIT(A) that the assessee has claimed depreciation on LPG Gas Plant and has not restricted it to the cylinders, valves and regulators. Therefore, the conclusion reached by the ld. CIT(A) is liable to be supported. - Decided against revenue. - ITA No. 2928/Del./2009 - - - Dated:- 4-9-2015 - SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Appellant : Sh. P Dam Kanunjna, Sr. D.R. For The Respondent : Sh. Ashwani Kumar, C.A. ORDER Per L.P. Sahu, Accountant Member: This appeal filed by the revenue on 17.06.2009 is directed against the order dated 16.03.2009 of the learned CIT(A), Panchkula for the assessment year 2003-04 on the following grounds : 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred on facts and in law in deleting the addition of ₹ 7,51,539/- made by the Assessing Officer on account of late deposit of employer s contribution to PF disregarding the fact that the payments were made beyond the due dates and were, therefore, not allowable u/s. 36(1)(va) and were to be treated as income u/s 2(24)(x) of the Income T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f the I.T. Act. The assessee company has claimed unabsorbed depreciation and business losses amounting to ₹ 27,95,48,422/- in the computation of taxable income. In the submissions made by the learned AR, the Assessing Officer found that the brought forward losses and unabsorbed depreciation of Indital Tintoria Ltd. has been claimed by the assessee company on return losses and not in accordance with the amount assessed. In response , the assessee company filed details regarding the amount assessed in the case of M/s. Indital Tintoria Ltd. and the same has been shown at ₹ 26,08,15,117/-. The details regarding the brought forward losses and depreciation allowable to the assessee company was called from the office of the ACIT,Circle-1, Alwar who had jurisdiction over the case of M/s. Indital Tintoria Ltd. and these details are mentioned in the assessment order passed by the Assessing Officer for assessment year 2002-03 except for the succeeding year 2003-04. From the record, it reveals that the assessee company has claimed excess brought forward losses and depreciation, which is restricted to ₹ 26,06,85,370/- as against ₹ 27,95,48,422/- claimed by the assessee c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cer, thus, after considering the provisions of section 2(24), section 43B read with section 36(1) of the Act, made an addition of ₹ 14,93,261/- to the income of the assessee, which includes the employees contribution of ₹ 7,41,722/- and employer s contribution of ₹ 7,51,539/-. 4. The assessee challenged this addition in appeal before the ld. CIT(A), who accepted the contention of the assessee that the delayed payments made due to Sunday and Gazetted Holidays are eligible for deduction. The ld. CIT(A) has also given the details of such payments which have been made late due to Sundays and holidays with respect to both employees and employer s contribution at page 9 of the impugned order. He also accepted the contention of the assessee that the payments made within the grace period of five days from the due date are also eligible for deduction and directed the Assessing Officer to allow the deduction in respect of employer s contribution, where the amounts have been deposited within the grace period. Considering the decisions of various Benches of ITAT, as mentioned in the impugned order, the learned CIT(A) directed the Assessing Officer to recomputed the disall .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... owing depreciation : Name of asset Dep. Claimed By assessee(%) Dep. Allowed by A.O. (%) Dep. Allowed by CIT(A) (%) (i). Cylinders, Valves Regulators. 80% 25% 80% (ii). Water treatment plant water pollution control equipment System 80% 25% 80% (in grounds of appeal 100% claim is shown ) (iii). Racks, Bins Trolleys 25% 15% 25% (iv). Sewage Treatment Plant 100% 25% 100% (v). LPG Gas Plant in Speedomax 80% 25% 80% 10. We have heard and considered the arguments advanced by the parties and have gone through the orders of the authorities below and materials available on record. 11. As regards the depreciation on Cylinder, valves regulators, the learned CIT(A) has allowed depreciation @ 80% in respect of gas cylinders including valves and regulators. He observ .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eason that some of the bills as mentioned in the impugned order were not available. The learned CIT(A) allowed the depreciation at the rate of 100% on these assets observing that the deficit bills are available, for submission of which the AO did not give reasonable opportunity to the assessee. No contrary evidence could be adduced on behalf of the revenue to contradict the finding of fact recorded by the learned CIT(A). We, therefore, endorse the view expressed by the ld. CIT(A) on this account. 15. As regards the depreciation on LPG gas plant including cylinders, valves regulators in Speedomax Unit, the learned CIT(A) allowed depreciation @ 80% for the reason that the assessee has not restricted the depreciation on Cylinders, Valves and regulars, but has claimed depreciation on LPG gas plant. While doing so, the ld. CIT(A) appears to have accepted the contention of the assessee that the LPG gas plant is nothing but a plant to regulate the functioning of gas cylinders and therefore, such LPG gas plant is covered in sub-clause (x) of sub-clause 8 of Item III (Part A) which consists of gas cylinders including valves and regulators. The learned DR failed to place any contrary ma .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates