2019 (9) TMI 606

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l the conditions laid down for claiming additional depreciation of Rs. 7,86,525/- and thereby ignoring the clear finding of the AO that the assessee is a civil contractor and therefore does not qualify for the addition depreciation for the detailed findings mentioned in the assessment order. (2) Whether on the facts and in the circumstances of the case and in law, the CIT(Appeals) has erred in holding that the assessee firm is manufacturing on its own and job work basis, in spite of the facts on record that the assessee firm has not done manufacturing of its own but did only job work of others on contract basis." 2. The only issue arises in this appeal of the Revenue is claim of additional depreciation disallowed by the AO was a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eciation is not allowable. 4. On the other hand, ld. AR of the assessee has submitted that the assessee is in the activity of manufacturing or production of aggregate and not a civil work contractor for construction of building. The assessee was awarded supply contracts of aggregate by various infrastructure companies like Punj Lloyd Limited, G R Infraprojects Limited, Sangyong Engineering and Construction Company limited. Thus, it is clear that the assessee firm is engaged in the business of manufacture of aggregate which were supplied to these companies who were engaged in the construction and infrastructure development. The assessee established a crusher unit for production of aggregate for supply to the awarders and they have dedu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n para 2.3 & 2.3.1 as under:- "2.3 Ground No. 1 and 2 are being taken up together. I have perused the facts of the case, the assessment order and the submissions of the appellant. The Assessing Officer disallowed the claim of additional depreciation by presuming that the assessee is a contractor of civil work and not engaged in manufacturing or production of any article or thing. Ld. Authorized Representative said that assessee is not a civil contractor. He is engaged in manufacturing/production of aggregate for which he has established a crusher unit. During the year, he was awarded supply contract of aggregate from various infrastructure companies. Considering the overall facts, it is seen that assessee is deriving income from th....