Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Deputy Commissioner of Income Tax, Corporate Circle 6 (2) , Chennai Versus M/s. Sree Jayajothi Cements Ltd.,

Claim of additional depreciation - Machines were acquired during the previous financial year but put to use during the current financial year - Held that:- The facts brought on record shows that the plant and machinery does not a new plant and machinery acquired in the assessment year under consideration. The first requirement for claiming additional depreciation is that it should be a new plant and machinery. The machinery was new only when it is first put to use. When it is already installed i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng year on machinery, though it was acquired in earlier year. That cannot be any presumption that unless a claim is specifically denied, it has to be allowed. In our opinion, each assessment year is separate and independent assessment year. The provisions of the section 32 of the Act do not provide for postponement or carry forward of the residual additional depreciation, if any, in subsequent assessment years. Further, it is to be noted that when an allowance, which is ordinarily not available .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nsideration.

Thus in the present case, this plant and machinery already capitalized in the earlier assessment years and also appeared in the block of assets. In our opinion, the assessee is not entitled to additional depreciation u/s.32(1)(iia) of the Act on the machineries acquired not in the Financial year 2010-11 relevant to the assessment year 2011-12. - Decided against assessee - I.T.A.No.1932/Mds. /2015 - Dated:- 6-4-2016 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G.PAVA .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng Officer to allow additional depreciation as claimed by the assessee on the basis normal depreciation. 2.2 The Learned CIT(A) erred and has failed to know the assessee filed the revised return for the assessment year 15/08/2013(beyond due date). The revised return of income should have been filed before 31/03/2013 for the same should be valid. - 2.3 The Learned CIT(A) erred and that the assessee has claimed additional depreciation In the case of any new Plant and Machinery (Other than ships an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng and its cement manufacturing plant is located at Yanakondla village, Kurnool District, Andhra Pradesh. The assessee had commenced business only during Financial Year 2010-11. In its return of income filed dated 28.09.2011, the assessee had declared a current year loss of ₹ 225,73,97,518/-. Subsequently, the assessee revised its return of income on 15.08.2013 wherein the assessee claimed additional depreciation and increased its current year loss of ₹ 458,18,27,943/- Subsequently, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o observed that the machineries were not acquired and installed in same Financial Year 2010-11 relevant to assessment year 2011-12 and there already existed in block of plant and machinery of ₹ 671,46,33,632/- as on 31.03.2010 and at best the additional depreciation for the Financial Year 2010-11 can at best be restricted to the plant and machinery hired after 31.03.2010. According to the AO, the machineries were acquired and installed during the Financial Year 2009-10 was ready to use and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

AO granted he normal depreciation on plant and machinery which were purchased in the earlier also. But only for the purpose of granting additional depreciation, the AO treated he entire purchase of plant and machinery as not new one. The Ld.CIT(A) further observed that the action of the AO is contrary to his own finding by granting normal depreciation on the entire value of plant and machinery rather than the depreciated value as alleged by AO. Ld.CIT(A) observed that the acquisition and install .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

K.L.Concast Pvt Ltd. vs. DCIT for assessment year 2009-10 reported in 52 Taxmann.com 445 and also in the case of CRI Pumps Pvt. Ltd. Vs. ACIT for assessment year 2007-08 reported in [2013] 34 Taxmann.com 123 and Circular No.3/2006 dated 27.02.2006 observed that the assessee is eligible for the claim of additional depreciation on the plant and machinery installed till the date of commencement of production. Aggrieved with the order of the Ld.CIT(A), the Revenue is in appeal before us. 5. The prim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

On the other hand, ld.A.R relied on the order of CIT(A) and also the following decisions with elaborate submissions. a) Goetze (India) Ltd., V. CIT in [2006] 157 Taxman 1 (SC) b) ITO Vs. Sri Balaji Sago & Starch Products in [2012] 19 Taxmann.com 313(Chennai) c) M/s.Refex Refrigerants Ltd. v. ITO in IA No.967/Mds./2012 dated 31.07.2012 d) CIT v. Pruthvi Brokers & Shareholders in [2012] 23 taxman.co,23(Bom.) e) Ramco Cements Ltd. V. DCIT in [2015] 55 taxman.com 79(Mds.) f) International Ca .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y CBDT Circular No.14(X4-35) dated 11.04.1955. The same view was taken by the Co-ordiante Bench Chennai in the case of M/s.Refex Refrigerants Ltd. v. ITO in IA No.967/Mds./2012 dated 31.07.2012 wherein held that filing the revised return belatedly cannot go in a way to deny the deduction u/s.32(i)(ii) of the Act. Being so, in our opinion to that extent we are not in agreement with the ld.D.R. 7. Coming to the main issue of granting deduction u/s.32(1)(ii) of the Act, the admitted fact is that th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rought on record shows that the plant and machinery does not a new plant and machinery acquired in the assessment year under consideration. The first requirement for claiming additional depreciation is that it should be a new plant and machinery. The machinery was new only when it is first put to use. When it is already installed in earlier assessment year, it was no more new machinery or plant. Once it was not a new machinery or plant, the additional depreciation u/s.32(1)(iia) cannot be allowe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: REGISTRETION

Notification: Absolute Exemption from IGST on inter-State supplies of goods

Notification: CGST Rate Schedule u/s 9(1) - notifying rates of CGST @ 2.5%, 6%, 9%, 14%, 1.5% and 0.125% on Supply of Goods

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Forum: On what Value tax to be deducted at source (TDS)

Highlight: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods. - Notification no. 1/2017 as amended vide notification dated 22-9-2017

Notification: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods.

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version