CINETECH ENTERTAINMENT INDIA PVT LTD, ,MUMBAI vs. ITO, WAR-16(1)(1), MUMBAI

This is an appeal preferred by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi dated 14.10.2021 for AY. 2015-16.

The main grievance of the assessee is against the action of the Ld. CIT(A) confirming the action of the AO disallowing the depreciation in respect of Film Projector. 3. At the outset, it has been brought to my notice that there is a delay of fifteen (15) months in filing of the appeal. According to Ld. AR, even though, the Ld. CIT(A) has passed the impugned order on 14.10.2021, the assessee was not aware of the passing of the impugned order because it was an ex-parte order; and a copy of which was not received by the assessee and the assessee came to know about the passing of the exparte order only while casually examining e-filing portal on 31.03.2023; and immediately after realising that impugned order was passed, the assessee filed the appeal on 05.04.2023; and in 2 A.Y. 2015-16 M/s. Cinetech Entertainment India Pvt. Ltd. order to support the aforesaid contention has filed an affidavit. After going through the contents of the affidavit, I am of the view that delay caused was not due to the deliberate omission the part of assessee. Since there is reasonable cause for delay in filing of appeal, the delay caused in filing of appeal is condoned and proceed to dispose of the appeal on merits. 4. At the outset, regarding the issue of deprecation claimed by assessee, it has been brought to my notice that the assessee had claimed 60% depreciation in respect of Film Projector in the earlier assessment year i.e. in AY. 2013-14 which was not accepted even at the level of this Tribunal and depreciation was allowed only at 15%. And it was also brought to our notice that in AY 2014-15 also, the Tribunal following the decision in assessee’s own case for AY. 2013- 14 have directed the AO to examine the working of depreciation as per the revised WDV for AY. 2014-15. Therefore, the prayer of the assessee is only limited to allowing depreciation @ 15% as per the revised WDV after giving effect to Tribunal order for earlier two assessment years [AY 2013-14 & 2014-15]. In the light of the aforesaid decision of the Tribunal in the assessee’s own case for AY. 2013-14 & AY. 2014-15, similar direction need only be passed. For ease of understanding the effect of Tribunal order in earlier years to th on depreciation in respect of film projector, assessee has filed the following chart to show the claim of assessee and the action of AO/Tribunal (Infra) for AY. 2013-14, AY. 2014-15 and AY. 2015-16 which is extracted below: - As per IT Returns filed by the assessee 3 A.Y. 2015-16 M/s. Cinetech Entertainment India Pvt. Ltd. AY Opening WDV Addition during Total Depreciation @ Closing WDV the year 60% 2013-14 2,05,44,188 2,05,44,188 1,22,50,283 82,93,905 2014-15 82,93,905 20,80,800 1,03,74,705 62,24,823 41,49,882 2015-16 41,49,882 -11,200 41,38,682 24,83,209 16,55,473 As per Assessment Order Passed u/s 143(3) of the Act AY Opening WDV Addition during Total Depreciation @ Closing WDV the year 60% 2013-14 2,05,44,188 2,05,44,188 30,62,571 1,74,81,617 2014-15 1,74,81,617 20,80,800 1,95,62,417 29,34,363 1,66,28,055 2015-16 1,66,28,055 1,66,28,055 24,94,208 1,41,33,846 Depreciation Disallowable Particulars AY.2013-14 AY. 2014-15 AY. 2015-16 Depreciation Claimed as per ITR 1,22,50,283 62,24,823 24,83,209 Depreciation Allowable as per Asst. Order 30,62,571 29,34,363 24,94,208 Depreciation Disallowable 91,87,712 32,90,461 -10,999

Respectfully following the Tribunal orders, in assessee’s own case for AY. 2013-14 & AY. 2014-15, AO is directed to correctly re- work the depreciation allowable to the assessee as per the revised WDV chart given (supra) i.e, after giving effect to the Tribunal order in assessee’s own case for AY. 2013-14 & AY. 2014-15 by giving 15% depreciation on Film Projector, in accordance to law and after considering the chart reproduced (supra).