CREST SPECIALITY RESINS PRIVATE LIMITED,KHEDA, GUJARAT vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1), AHMEDABAD, AHMEDABAD, GUJARAT

PDF · subscribers
ITA 1584/AHD/2024Status: DisposedITAT Ahmedabad02 May 2025AY 2015-16Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R. SENTHIL KUMAR (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that electrical installations are corollary to plant and machinery, thus 15% depreciation is allowable. The Tribunal followed a co-ordinate bench's decision in the assessee's own case for AY 2011-12.

What were the facts?

The assessee claimed depreciation at 15% on electrical installations. The Revenue allowed only 10% depreciation, disallowing Rs. 4,98,971.

What were the issues?

Whether the assessee is entitled to depreciation at 15% on electrical installations as they are corollary to plant and machinery.

Which sections of the Income-tax Act were involved?

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI T.R. SENTHIL KUMAR

For Appellant: Ms. Amrin Pathan, AR
For Respondent: Shri Ankit Jain, Sr DR
Hearing: 23.04.2025Pronounced: 02.05.2025

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER (Assessment Year: 2015-16) Crest Speciality Resins Private Deputy Commissioner of Vs. Limited, Income Tax, Survey No.609, Circle-1(1)(1), Village Kheda, Ahmedabad Kheda-378560 [PAN : AAACC6333 R] (Appellant) .. (Respondent) Appellant by : Ms. Amrin Pathan, AR Respondent by: Shri Ankit Jain, Sr DR Date of Hearing 23.04.2025 Date of Pronouncement 02.05.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

Delay Condoned This appeal is filed by the Assessee against the appellate order dated 09.05.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2015-16.

2.

Straight to the issue of depreciation, the assessee claimed depreciation @ 15% on the electrical installation and the Revenue allowed the depreciation @ 10% and disallowed an amount of Rs.4,98,971/-. On going through the record, we find that the electrical installations are corollary to the plant and machinery; hence, depreciation @ 15% is allowable. It is also to be mentioned here that a similar matter stands adjudicated by the Crest Speciality Resins Pvt. Ltd. Vs.DCIT Asst. Year : 2015-16 - 2– Co-ordinate Bench of the Tribunal in assessee’s own case for AY 2011-12 on the identical issue wherein the depreciation was allowed @ 15%. In the absence of any change in the factual matrix of the case and in the legal proposition, the appeal of the assessee is hereby allowed.

3.

In the result, the appeal of the assessee is allowed.

Recent GST High Court judgments

Search GST case law →