TaxTMI 
TaxTMI 
2024 (10) TMI 711
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.... questions of law arising out of the order dated 08.11.2023 passed by the Income Tax Appellate Tribunal, Ahmedabad "C" Bench in ITA No. 52/Ahd/2021 for Assessement Year 2015-2016. "(i) Whether on the facts and circumstances of the case and in law, the Appellate Tribunal has erred in allowing additional depreciation of Rs.32,65,56,916 u/s. 32 (1) (iia) of the Act without appreciating that assessee is not engaged in manufacture or production of any article or thing? (ii) Whether the amendment by way of insertion of third proviso to section 32 (1) (ii) by Finance Act, 2015 w.e.f. 01.04.2016 providing for allowance of balance additional depreciation in the succeeding year is retrospective in nature? (iii) Whether on t....
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....n 32 (1) (ii) was amended for claim of additional depreciation w.e.f A.Y.2016-2017. 5. The Assessing Officer also made an addition of Rs. 2,58,50,676/- on account of alleged incorrect claim of depreciation and additional depreciation on various electrical items by not treating them as plant and machinery. 6. Being aggrieved, the assessee preferred appeal before the Commissioner (Appeals) who confirmed the dis-allowance made by the Assessing Officer not only confirmed the dis-allowance made by the Assessing Officer on additional depreciation but also enhanced the same on ground that the additional depreciation of Rs. 32,65,56,918/- is not allowable since, the assessee is not engaged in the business of manufacturing and production of an....
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....ncluding Paper Book and case laws filed by the assessee. The assessee is a Milk Purchaser Co.Op.Society and milk is procured from various farmers and villagers. Thereafter the said milk processed under various machines and manufactured into various milk products. Thus the activity carried out by the assessee is not only processing of milk but involved detailed technical machineries and manufacturing different kind of milk products." 8. The Tribunal also followed the decision of this Court in Tax Appeal No.760 of 2013 dated 23.01.2014 wherein it was held as under: "14. Thus, the whole process of conversion of the raw material when leads to production of new article and when its character, use and nature also indicate complete tra....
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....o with regard to additional depreciation is raised in Question Nos. 1 and 2 is also covered by the decision of this Court. In case of Question No.2 in case of The Principal Commissioner of Income-Tax vs. Kalpataru Power Transmission Ltd. in Tax Appeal No.791 of 2019 dated 06.01.2020 wherein it is held as under: "6. In view of the above facts, it would be germane to refer relevant provisions of Section 32 (1) of the Act which reads as under:- "32. (1) In respect of depreciation of- (i) buildings, machinery, plant or furniture, being tangible assets; (ii) know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acq....
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....subsection in respect of such asset shall be restricted to fifty per cent of the amount calculated at the percentage prescribed for an asset under clause (i) or clause (ii) or clause (iia), as the case may be : Provided also that where an asset referred to in clause (iia)or the first proviso to clause (iia), as the case may be, is acquired by the assessee during the previous year and is put to use for the purposes of business for a period of less than one hundred and eighty days in that previous year, and the deduction under this sub-section in respect of such asset is restricted to fifty per cent of the amount calculated at the percentage prescribed for an asset under clause (iia) for that previous year, then, the deduction for th....
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....an machinery purchased by the assessee is used for les than 182 days. Accordingly, the assessee has claime the additional depreciation to the extent of 10% on for Assessment Year 2010-11, and therefore, the cla of remaining 10% additional depreciation is made f the Assessment Year 2011-12." 11. Thus, both the Question Nos. 1 and 2 being factual and covered effectively cannot be said to be substantial question of law arising out of the impugned order passed by the Tribunal. 12. So far as Question No.3 is concerned, the Tribunal has observed that the Assessing Officer and CIT (Appeals) disallowed the depreciation on electrical items which are forming part of plant and machinery, in this connection the Tribunal has arrived the f....