Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2019 (9) TMI 606

..... ied the claim of additional depreciation on the ground that the assessee is not engaged in the production or manufacture of articles or things but the assessee is doing contractual civil work - CIT-A allowed the claim - HELD THAT:- The assessee is not carried out any activity of construction or development of projects but the assessee is in the activity of converting the stone blocks into aggregate which is used in the construction unit. Therefore, the assessee is not a civil contractor but supplying the construction material to other companies engaged in the construction/infrastructure activity. Once the activity of the assessee is converting the large stone blocks into aggregate which is after undergoing the process of crushing then the s .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... lding that the assessee firm is manufacturing on its own and job work basis, in spite of the facts on record that the assessee firm has not done manufacturing of its own but did only job work of others on contract basis. 2. The only issue arises in this appeal of the Revenue is claim of additional depreciation disallowed by the AO was allowed by the ld. CIT(A) by holding that the assessee firm is manufacturing on its own and job work basis. The assessee is a firm and engaged in the production of GSB and aggregate during the year under consideration. The assessee purchased new plant & machinery for its business activity and claimed addition depreciation U/s 32(i)(iia) of the IT Act. The AO denied the claim of additional depreciation on t .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... Company limited. Thus, it is clear that the assessee firm is engaged in the business of manufacture of aggregate which were supplied to these companies who were engaged in the construction and infrastructure development. The assessee established a crusher unit for production of aggregate for supply to the awarders and they have deducted tax at source for supply contract of aggregate. There is no dispute that the raw material used by the assessee is stone blocks which are crushed and converted into aggregate and used in the construction activity, therefore, the plant and machinery purchase by the assessee for carrying out the operation of manufacturing/production of aggregate is eligible for additional depreciation U/s 32 (i)(iia) of the IT .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... that assessee is not a civil contractor. He is engaged in manufacturing/production of aggregate for which he has established a crusher unit. During the year, he was awarded supply contract of aggregate from various infrastructure companies. Considering the overall facts, it is seen that assessee is deriving income from the manufacturing of aggregate on his own and on job work basis. The Assessing Officer wrongly presumed that he is contractor of civil cork. As per section 32, additional depreciation is allowable, if the assessee is engaged in the production/manufacturing of an article or thing and new machine has been acquired after 31.03.2005. 2.3.1 In the present case, the appellant has fulfilled these conditions. The Authorized Represent .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||