×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
The above captioned appeal filed at the instance of assessee pertaining to Assessment Year 2011-12 is directed against the orders of Ld. Commissioner of Income Tax (Appeals)-I (in short ‘Ld.CIT(A)’], Indore dated 08.03.2017 which are arising out of the order u/s. 143(3) of the Income Tax Act 1961(In short the ‘Act’) dated 30.03.2014 framed by ACIT-5(1), Indore.
2. Assessee has raised following grounds of appeal;
“1. That the learned CIT(A) erred in maintaining disallowance of Rs.1,39,47,703/- out of depreciation made by the A.O. That depreciation on CNC Drill Machine claimed @80% is legal and proper. Thedisallowance so made by the AO erred maintained by learned CIT(A) is illegal and wrong, the same require to be deleted”
3. Briefly stated facts as culled out from the records are that the assessee is a Private Limited Company engaged in the business of manufacturing of Dies, Roller Shell, Machineries and Feed & Grain Plant equipment. Loss of Rs.35,73,286/- declared in the e-return of income filed on 29.09.2011 which was further revised on 22.09.2012. Case picked for scrutiny and necessary notices u/s 143(2) and 142(1) of the Act were duly served upon the assessee. Apart from the additions for unexplained cash credit of Rs.28,00,000/- received from three different parties which in the view of the Learned Assessing Officer (In short ‘Ld. A.O’) could not pass the test of identity, genuineness and creditworthiness, Ld. A.O also examined the claim of depreciation @80% under Block IX on purchase of CNC Drill machine. It was submitted by the assessee that the higher rate of depreciation @80% has been claimed under the rates of Energy Saving Device. It was claimed that the machines were used to manufacture agricultural and municipal waste conversion devices. However it was accepted that the pelleting dies manufactured by assessee did not produce any energy. The submission of the assessee could not convince the Ld. A.O and he therefore denied 80% depreciation charged by the assessee and only allowed the normal rate of 15% and additional depreciation @20% on the CNC drill machine purchased by the assessee. Accordingly as against the claim of depreciation by the assessee at Rs. 2,47,95,914/- the Ld. A.O only allowed depreciation at Rs.1,08,48,211/- thereby making the addition at Rs.1,39,47,703/-. Income assessed at Rs.1,31,74,417/-.
Aggrieved assessee filed appeal only against the disallowance of depreciation at Rs.1,39,47,703/- but failed to succeed as the impugned disallowance was sustained by Ld.CIT(A) observing as follows;
“5. Ground No.1:- This ground of the appellant lS directed against the disallowance of RS.20 146681/ - being claim of depreciation at the rate of 80%) on CNC Drill Machines disallowed. The detailed facts of the case as per the assessment order are reproduced at Para No. 2 above and the detailed submissions of the appellant are reproduced at Para NO.3 above.
5.1 The crux of the appellant's argument is that as the CNC Machines