Tribunal Upholds Disallowance of Excess Depreciation & Other Claims for A.Y. 2008-09 & 2009-10

The tribunal dismissed all three appeals by the assessee for A.Y. 2008-09 and 2009-10. The disallowance of depreciation claimed in excess was upheld as not suitable for resolution under section 154. Issues regarding deduction u/s 80IB, treatment of subsidy, and classification of expenditure were decided against the assessee based on previous judgments. The decisions made in the A.Y. 2008-09 cases were found applicable to the A.Y. 2009-10 cases, resulting in the dismissal of all grievances.

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Issues involved:
- Appeal arising out of proceedings u/s 154 for A.Y. 2008-09
- Appeal arising out of assessment proceedings u/s 143 (3) for A.Y. 2008-09
- Appeal arising out of assessment proceedings u/s 143 (3) for A.Y. 2009-10

Analysis:

Appeal u/s 154 for A.Y. 2008-09:
The issue revolved around the disallowance of depreciation claimed in excess by the assessee. The Assessing Officer (A.O.) disallowed depreciation on Tools, Moulds with Shoe plates, and Shoe Lasts, claiming it was excessive. The assessee argued that the expenditure was revenue in nature, not capital. However, the tribunal held that the distinction between capital and revenue expenditure is not a matter of apparent mistake under section 154. The tribunal dismissed the appeal, stating that the claim was debatable and not suitable for resolution under section 154.

Appeal u/s 143 (3) for A.Y. 2008-09:
The first grievance was the disallowance of deduction u/s 80IB for Duty Draw Back income. Citing a judgment by the Hon'ble Apex Court, the tribunal upheld the decision against the assessee. The second grievance was regarding the treatment of subsidy as part of the actual cost of Plant & Machinery. The tribunal found no grounds to interfere with the CIT (A)'s decision based on relevant judgments. The third grievance was the classification of the cost of moulds as capital expenditure instead of revenue expenditure. The tribunal dismissed the appeal, following the decisions made in the A.Y. 2008-09 case.

Appeal u/s 143 (3) for A.Y. 2009-10:
The issues raised were similar to those in the A.Y. 2008-09 cases. The tribunal found that the decisions made in the previous year's appeals were applicable to the current year as well. Consequently, all three issues raised by the assessee were decided against them, leading to the dismissal of the appeal.

In conclusion, all three appeals of the assessee were dismissed based on the findings and judgments presented in the respective cases for the assessment years 2008-09 and 2009-10.

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