2015 (2) TMI 617

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....;  1. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(Appeals) has erred in confirming the action of Assessing Officer in disallowing additional depreciation of Rs. 9,18,722/-. 2. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(Appeals) has erred in partly confirming the action of Assessing Officer by sustaining disallowance to the extent Rs. 5,981/- as against Rs. 14,953/- made by Assessing Officer on account of the expenses. 2. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) of the I.T. Act, 1961 dated 26/11/2010 were that the assessee-firm is engaged in the business of embroidery work on job work basis.....

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....lant are not strong enough to call for interference in the Assessing Officer's Order. Accordingly, the Order of the A.O holding that additional depreciation of Plant & Machinery is not allowable to the appellant is 'UPHELD'. 4. We have heard the parties. We find that, considering the facts narrated hereinabove, the issue is squarely covered by the decision of ITAT "SMC" Bench Ahmedabad bearing ITA No.1569/Ahd/2010 for A.Y. 2007-08 titled as "ITO vs. Haripriya Processors Pvt.Ltd." dated 08/09/2009, wherein the Tribunal has held as under:-             "5. I have heard the rival contentions and gone through the facts and circumstances of the case. I find from the facts that the asses....

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.... a wider connotation than the work "manufacture" and reliance placed by the assessee on the decision of Hon'ble apex court in the case of S.S.M. Brothers (P) Ltd. & Others v. CIT (2000) 243 ITR 418 (SC), wherein the development rebate claimed u/s.33(1)(b)(B)(i) was allowed by holding that the plant and machinery were used in the production of processed textiles (embroidery) and therefore, the machinery is entitled to development rebate under the above provisions. Section 33(1)(b)(B)(i) provides for development rebate on machinery or plant which is installed for the purpose of business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule. The ratio of above de....

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....ubject to levy of duty and considered as manufacture. The relevant Tariff Item 5810 reads as under:- SECTION XI 350   CHAPETER 58   Tariff item Depreciation of Goods Unit Rate of duty (1) (2) (3) (4)   5810 Embroidery in the Piece, in strips on In motifs     5810 10 00 Embroidery without Visible ground Other embroidery; Kg. 8% 5810 91 00 Of cotton     5810 92 Of man-made fibres Kg. 8% 5810 92 10 Embroidered Badges, motifs and the like Kg. 8%   5810 92 90 Other Kg. 8%   5810 99 00 Of other textiles materials Kg. 8%     As the issue is squarely cover....