Vijaypataka Synthetics, Surat vs Assessee

The Revenue is in Appeal and the Assessee is in Cross Objection arising from the order of learned CIT(A)-II, Surat, dated 30.05.2011. The Revenue has objected the grant of additional depreciation u/s.32(1)(iia).

2. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) dated 30th of September, 2010 were that the Assessee- firm is in "embroidery work on fabrics". The Assessee has claimed 20% ITA No.1886/Ahd/2011 & CO No.217/Ahd/2011 M/s. Vijaypataka Synthetics, Surat For A.Y. 2008-09 -2-

additional depreciation on machinery installed, which was disallowed by the AO. We have been informed that the assessee has quoted an order of the Tribunal in respect of the claim which was also not considered by the AO.

3. When the matter was carried before the First Appellate Authority, learned CIT(A) has considered few orders of the Tribunal and held that the issue has already been decided in favour of the Assessee; therefore, directed to allow the claim.

4. Having heard the submissions of both the sides, we are of the view that this issue is now covered by the decision of ITAT 'A' Bench Ahmedabad pronounced in the case of M/s. Hari Fashions (ITA No.3105/Ahd/2010) A.Y.2007-08 order dated 27.05.2011 wherein the decision of Hon'ble ITAT 'SMC' Ahmedabad pronounced in the case Haripriya Processor Pvt. Ltd. (ITA No.1569/Ahd/2010 order dated 8.9.2009) was followed and held that in a situation when the Assessee is in the business of embroidery processing and for that machinery was installed then he is entitled for additional depreciation u/s.32(1)(iia). We have also noted that the Hon'ble Apex Court in the case of S.S. & Brothers Pvt. Ltd., 243 ITR 418 (SC) has also held that a machinery used for the production of embroidery is entitled for the development rebate therefore applying the same legal ratio the Tribunal has held that such type of machinery is also entitled for additional depreciation. Due to all these reasons, we find no force in the grounds raised by the Revenue and the same are hereby dismissed.

ITA No.1886/Ahd/2011 & CO No.217/Ahd/2011 M/s. Vijaypataka Synthetics, Surat For A.Y. 2008-09 -3-

5. The Cross Objections filed by the respondent-assessee are only in support of the view taken by learned CIT(A). Since, no legal/factual question has been raised for adjudication; hence Cross Objection is dismissed.

6. In the result, Appeal of the Revenue and Cross Objection of the Assessee, both are dismissed.

Sd/- Sd/- (ANIL CHATURVEDI) (MUKUL Kr. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 20/02/2015 Prabhat Kr. Kesarwani, Sr. P.S.s आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आयु त / Concerned CIT

4. आयकर आयु त(अपील) / The CIT(A)-III, Ahmedabad

5. वभागीय त न ध, आयकर अपील य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड फाईल / Guard file.

आदेशानुस ार / BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad