TMI Blog2010 (10) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... <![endif]--><!--[if gte mso 10]> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-paginat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer of ₹ 29,40,514/- on account of additional depreciation claimed by the assessee for the assessment year 2007-08. 2. Briefly stated the facts are that the assessee is a partnership firm. In the assessment order, the Assessing Officer disallowed the claim of the assessee for additional depreciation of ₹ 29,40,514/- on the ground that the assessee is not engaged in any manufacturing or embroidery works on fabrics as mentioned in section 32(1)(iia) of the Income Tax Act, 1961. On appeal, in the impugned order, the Learned Commissioner of Income Tax(Appeals) took the view that the assessee is entitled to additional depreciation contained in provisions of section 32(1)(iia) of the I.T. Act. He accordingly directed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely covered by the decision of Tribunal in the case of Haripriya Processors Pvt. Ltd. (supra), the view taken by the Learned Commissioner of Income Tax (Appeals) be upheld. 5. Having heard both the sides, we have carefully gone through the orders of authorities below as well as the decision dated 08.09.2009 of ITAT, SMC Bench, Ahmedabad in ITA No. 1569/AHD/2010 for the assessment year 2007-08 in the case of Haripriya Processors Pvt. Ltd. (supra) relied by the ld. counsel of the assessee. In the said decision, ITAT, SMC Bench, Ahmedabad on identical facts took the view that the assessee is entitled to additional depreciation under section 32(1)(iia) of the Income Tax Act, 1961. The relevant discussion is contained in para 5 of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture and reliance placed by The assessee on the decision of Hon'ble apex court in the case of S.S.M. Brothers (P) Ltd. Others v. CIT (2000) 243 ITR 418 (SC), wherein the development rebate claimed u/s.33(1)(b)(B)(i) was allowed by holding that the plant and machinery were used in the production of processed textiles (embroidery) and therefore, the machinery is entitled to development rebate under the above provisions. Section 33(l)(b)(B)(i) provides tor development rebate on machinery or plant which is installed for the purpose of business of construction, manufacture or production of any one or more of the articles or things specified in the List in the Fifth Schedule. The ratio of above decision of Hon'ble Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered as manufacture. The relevant Tariff Item 5810 reads as under: - Section XI 350 Chapter 58 Tariff Item Depreciation of goods Unit Rate of duty 5810 Embrodiery in the piece, in strips on in motifs 5810 10 00 Embrodiery without visible ground Kg. 8% 5810 00 Other emcrodiery of cotton Kg. 8% 5810 92 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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