9911796707
TMI Blog2010 (10) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... i-font-size:10.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} table.MsoTableGrid {mso-style-name:"Table Grid"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-priority:59; mso-style-unhide:no; border:solid black 1.0pt; mso-border-themecolor:text1; mso-border-alt:solid black .5pt; mso-border-themecolor:text1; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-border-insideh:.5pt solid black; mso-border-insideh-themecolor:text1; mso-border-insidev:.5pt solid black; mso-border-insidev-themecolor:text1; mso-para-ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 32(1)(iia) of the I.T. Act, 1961. The Learned Commissioner of Income Tax (Appeals) following his decision dated 22.01.2009 in assessee's own case for the assessment year 2006-07 in Appeal No. CAS/II/294/2008-09 allowed additional depreciation. Aggrieved with the order of Learned Commissioner of Income Tax(Appeals), the Revenue is in appeal before the Tribunal. 3. At the time of hearing before us, on behalf of Revenue Shri Shailendra Sharma, ld. D.R. appeared and contended that the assessee firm is engaged in the business of embroidery on job work basis, therefore, it is not engaged in the business of manufacturing and as such is not entitled to additional depreciation under section 32(1)(iia) of the Act, therefore, disallowance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and circumstances of the case. I find from the facts that the assessee is doing embroidery work on job work basis and said activity also results in production of new article which has different market of its own and there are various stages which are involved in embroidery activity and the same can be briefly categorized as under:- (i) Creating a digitalized embroidery design file; (ii) Editing the design and/or combining s{ with other design (optional); (iii)Load the final design file into the embroidery machine; (iv) Stabilize the fabric and place it in the machine; (v) Start and monitor the embroidery machine; And because of the above process which has to be carried out in very careful manner the output i.e. embroidered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or additional depreciation in respect or new machinery arid plant purchased by assessee who is engaged in the business of manufacture of production of any article or thing. In the above case the Hon'ble Supreme Court has already held that assessee was using machinery in production of processed textile i.e. embroidery work and thus, the fact embroidery work is regarded as production cannot be denied. Section 32(1)(iia) also used the word 'production of any article or thing' and thus, the product with embroidery work is included in the work any article or thing. In tact the provisions of section 32(1)(iia) are larger In scope as compared to section 33(10)(B)(b)(l) inasmuch as section 32(1)(iia) provides for additional depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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