2014 (6) TMI 802

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....filed her return of income for A.Y. 2008-09 declaring total income at Rs. Nil. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 24.12.2010 and the total income was determined at Rs. 21,43,290/-. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) vide order dated 20.06.2011 dismissed the appeal of the Assessee. Aggrieved by the order of CIT(A), Assessee is now in appeal before us and has raised the following effective ground:- 1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in disallowing additional depreci....

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....t manufacturing activity. At best it is value addition only. Appellant has not led any evidence which would call for interference in A.O's order. In view of the above, the Assessing Officer's order is confirmed. 5. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us . Before us, at the outset, the ld. A.R submitted that the issue in the present case is allowability of additional depreciation of embroidery machines. He submitted that the issue of additional depreciation of embroidery machines has been settled in Assessee's favour by the various decisions of Hon'ble Ahmedabad Tribunal in assessee's favour. He placed on record the copies of the decision in the case of ITO vs. Aswani Industries ( ITA No. 140/AHD/2013 or....

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....s obtained from his clients which are neither manufactured nor processed by him therefore assessee cannot be considered as manufacturer or producer. Consequently, the additional depreciation of Rs. 35,45,7007- claimed by the assessee was disallowed by him. Ld. C1T(A) has given relief to the assessee by placing reliance on the decision of ITAT in assessee's own case for A.Y. 2007-08. The only issue to be decided by us is whether embroidery work earned on embroidery machines is manufacturing activity or not and consequently whether additional depreciation u/s 32(l)(iia) is allowable on these machines or not. Since the issue has been decided by Hon'ble ITAT Ahmedabad Bench in several cases in favour of the assessee including the decisi....