Appellate Tribunal Affirms 30% Depreciation on Plastic Moulds The Appellate Tribunal upheld the Commissioner of Income Tax (Appeals)'s decision to allow depreciation on plastic moulds at 30%, based on previous ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appellate Tribunal Affirms 30% Depreciation on Plastic Moulds
The Appellate Tribunal upheld the Commissioner of Income Tax (Appeals)'s decision to allow depreciation on plastic moulds at 30%, based on previous Tribunal orders favoring the assessee. The Revenue's appeal against the deletion of the disallowance was dismissed, affirming the assessee's entitlement to claim depreciation at the higher rate.
Issues: 1. Disallowance of depreciation on plastic moulds used in electric goods.
Analysis: The appeal before the Appellate Tribunal ITAT Mumbai concerned the disallowance of depreciation on plastic moulds used in electric goods. The issue arose from the order of the Commissioner of Income Tax (Appeals) in appeal No. CIT(A)-53/ACC-36/IT-336/2014-15 dated 22-02-2016, where the Assessment for the year 2011-12 was framed by the Assistant Commissioner of Income Tax, Circle-36, Mumbai under section 143(3) of the Income Tax Act, 1961. The only ground raised by the Revenue in this appeal was against the CIT(A)'s decision to delete the disallowance of depreciation on the plastic moulds.
The facts of the case revealed that the assessee had claimed depreciation on plastic moulds at 30%, which was restricted to 15% by the Assessing Officer. However, the CIT(A) overturned this decision by referring to the Tribunal's previous decision in the assessee's own case. The Tribunal had directed the Assessing Officer in prior years to allow depreciation on moulds at 30%, and since there were no new facts justifying a different stance, the CIT(A) allowed the depreciation at 30% in the present case as well.
Given that the issue was already settled in the assessee's favor by the Tribunal's orders for the assessment years 2007-08 and 2008-09, the Appellate Tribunal upheld the CIT(A)'s decision to delete the disallowance. The Tribunal confirmed that the appellant was entitled to claim depreciation on moulds at 30% based on the earlier Tribunal orders. Consequently, the appeal by the Revenue was dismissed, and the order was pronounced on 31-01-2018.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
