2017 (5) TMI 1686

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....see's appeals in ITA No.2930/Ahd/2013 and revenue's appeals in ITA No.2921/Ahd/2013 for A.Y. 2008-09. 3. Assessee has taken following Grounds of appeals: i. The learned CIT(A) erred in confirming the action of the Assessing Officer in disallowing expenditure on consumption of stores and spares of Rs. 64,31,768/- on the grounds that the same was a capital expenditure. ii. The learned CIT(A) erred in not admitting the additional ground of appeal relating to claim of depreciation of Rs. 3,16,68,491/- on Goodwill. 4. Revenue has taken following Grounds of appeals: On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in i. (a) upholding disallowance made in respect of expenses....

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....06-07 in assessee's own case. Relevant Page No.8, Para No.9 whereby the issue is restored to the file of AO. Also for A.Y. 2007-08 the issue is restored to the file of the AO's Order Page No.13, Para No. 28 who decides the matter. 8. In view of the followings, assessee's own case order passed by the ITAT. On this Ground, we remit the matter back to the file of the AO. 9. So far as Ground No.2 is concerned regarding depreciation on good-will of Rs. 3,16,68,491/- in CIT(A)'s Order Page No. 25, Para No.9, same is covered by the ITAT order in assessee's own case for A.Y. 200708 whereby the additional ground raised by assessee in ITAT was admitted and the issue was restored to the file of CIT(A). Relevant Page No.7, Para No.13. For this Gr....

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.... 17.50% 8,81,640 5. Reactor - Effluent water cooler, MEA405 19,163,671 17.50% 33,53,642   Total 2,95,31,766   54,35,447 The Assessing Officer was of the view that the above items are in the nature of independent machine or apparatus and hence can be independently used for manufacturing activities, which is required to be treated of capital nature. Accordingly expenditure on stores and spares of Rs. 2,95,31,766/- was capitalized and depreciation on it was allowed at Rs. 54,35,447/- by the A.O. The appellant carried the matter before the CIT(A) who has given detailed findings on Page Nos. 13 to 17. After considering the facts and circumstances of the case, he found the Hardware fo....

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.... 7,93,490/- on the assets leased by the appellant to Western Railways. The appellant had leased certain railway wagons to Western Railway and claimed depreciation on it. The A.O. asked to give justification for claiming of depreciation on those railway wagons. The assessee offered explanation before the A.O. and claimed that lease rent of Rs. 72,15,314/- was credited in P&L account and had shown as income and an amount of Rs. 27,71,806/- being lease equalization amount was debited to the P&L account and shown as reduction from the lease rent. But as in computation of total income, the lease equalization amount of Rs. 27,71,806/- was added in the income and offered for taxation but depreciation as per IT law was claimed. The appellant also c....

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....sion of Gujarat High Court in the case of CIT vs. Pinnacle Finance Ltd. 268 ITR 395, decision of Special Bench of Mumbai Tribunal in the case of Mid Est India Portfolio Management Ltd. 87 ITD 537, ITAT Madras in the case of CIT Special Range VIII Chennai vs. The Investment Trust of India Ltd. The operative portion of the order is as under:- "I have gone through the contentions of the appellant and the assessment order. It is noticed that the submissions and the inferences drawn thereon have been comprehensively discussed and dealt with in my predecessor's order for A.Y. 2003-04. The pleadings of the appellant on the issue are identical to those made in connection with the case for A. Y.2003-04. On identical issue for A.Y. 2003-....

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....sets and therefore, it cannot be said as full payout lease. Therefore, in the circumstances and facts of the case, the arguments made by the learned DR cannot be accepted and following the rule of consistency, the assessee deserves to be allowed the claim and we direct the AO accordingly to allow the claim of the assessee. The order of the learned CIT(A) is reversed. Thus, Ground no.12 of the assessee's appeal is allowed." The ld. CIT.D.R. vehemently relied on the order of CIT(A) & A.O. and has drawn our attention on recent decision of Special Bench, Mumbai, in case of M/s. lnduslnd Bank Limited vs. The Addl. Commissioner of Income-tax in ITA No. 6566/Mum/2002 for A.Y. 1998-99 and ITA No.606/Mum/2003 for A.Y 1999-2000 in which ....