Tribunal Upholds Reallocation of Depreciation and Denial of Deductions for 2010-11, 2011-12, Citing Consistency with Prior Rulings.

The Tribunal dismissed the Assessee's appeals for A.Y. 2010-11 and 2011-12, upholding the A.O.'s reallocation of depreciation between the Manesar and Delhi units under section 10B of the I.T. Act, 1961. The denial of deduction due to increased profits from disallowed expenses under section 40(a)(ia) was also sustained. The Tribunal based its decision on consistency with prior rulings and the lack of contrary evidence.

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Issues: Allocation of depreciation between eligible and non-eligible units under section 10B of the I.T. Act, 1961; Denial of deduction under section 10B due to increased profit from disallowed expenses under section 40(a)(ia) for A.Y. 2010-11 and 2011-12.

A.Y. 2010-11:
The Assessee's appeals were against separate orders for A.Y. 2010-11 and 2011-12. The issue involved the allocation of depreciation between the Manesar and Delhi units under section 10B of the I.T. Act, 1961. The Assessee claimed 100% export-oriented unit status for the Manesar unit. The Assessing Officer (A.O.) found that the Assessee claimed depreciation on a printing machine only for the Delhi unit, leading to a deliberate attempt to shift depreciation to a non-eligible unit. The A.O. re-allocated the depreciation between the units based on sales. The Ld. CIT(A) upheld the A.O.'s decision. The Assessee appealed, challenging the allocation of depreciation and the denial of deduction under section 10B due to increased profits from disallowed expenses. The Tribunal upheld the Ld. CIT(A)'s decision, citing consistency with past cases and no need for corrective action.

A.Y. 2011-12:
The Assessee's appeal for A.Y. 2011-12 raised similar grounds as for A.Y. 2010-11 regarding the allocation of depreciation between the Manesar and Delhi units under section 10B. The Tribunal noted that the grounds raised were identical to those for A.Y. 2010-11, which had been dismissed. Consequently, the appeal for A.Y. 2011-12 was also dismissed.

In conclusion, the Tribunal dismissed the Assessee's appeals for both A.Y. 2010-11 and 2011-12, upholding the allocation of depreciation between units under section 10B and the denial of deduction due to increased profits from disallowed expenses under section 40(a)(ia). The decisions were based on past rulings and the absence of contrary material.

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