2011 (7) TMI 1337

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....of Income tax (A) - XI, Ahmedabad has erred in law and on facts in deleting the addition made of Rs. 78,44,703/-on account of disallowance of depreciation on Moulding Box and Pattern. 2. The Ld. Commissioner of Income tax (A) - XI, Ahmedabad has erred in law and on facts in directing the Assessing Officer to allow addition of Rs. 92,98,537/- to moulds as current repairs and Written Down Value of Rs. 40,58,618/-claimed as written off for depreciation be allowed as revenue repairs. 3. The Ld. Commissioner of Income tax (A) - XI, Ahmedabad has erred in law and on facts in directing the Assessing Officer to allow depreciation of Rs. 85,32,394/- on new additions made to fixed assets without verifying the fact whether the additi....

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....s also claimed that such claim of the assessee was accepted in the earlier years. In respect of part of moulding boxes purchased during the year under consideration, the assessee claimed the same as current repairs. However, the AO did not accept the assessee's claim of 100% depreciation or current repair but allowed the depreciation at the rate of 25%. The CIT(A) accepted the assessee's contention, hence the appeal by the Revenue. 5. We find that similar issue came up before the ITAT in assessee's own case for A.Y.2003-04 in ITA No.1537/Ahd/2007 vide order dated 3- 6-2008 wherein the Tribunal held as under: "3. We have heard rival submissions and perused material available on record. As the facts emerge, we are in agreement wit....

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....or examining the assessee's contention that the moulds are frequently replaceable and has a very short life span. Therefore, the same should be treated as revenue expenditure. Since Ground Nos.1 to 3 of the Revenue's appeal raised the similar issue, we respectfully following the decision of ITAT in assessee's own case for A.Y.2003-04 set aside the order of the authorities below on this point and restore the matter back to the file of the AO. We direct him to readjudicate the issue in accordance with law and keeping in view the observation of the ITAT for A.Y.2003-2004. Needless to mention, the AO will allow adequate opportunity of being heard to the assessee while re-adjudicating the matter. 6. With regard to ground no.4, 5 and 6 are con....