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Income Tax Appellate Tribunal, MUMBAI BENCHES “D”, MUMBAI
Before: SHRI M. BALAGANESH (AM) & SHRI RAM LAL NEGI (JM)
O R D E R
PER RAM LAL NEGI, JM
This appeal has been filed by the revenue against the order dated 17.04.2018 passed by the Commissioner of Income Tax (Appeals)-8 (for short ‘the CIT(A), Mumbai, for the assessment year 2014-15, whereby the Ld. CIT(A) has partly allowed the appeal filed by the assessee against the assessment order passed u/s 143 (3) of the Income Tax Act, 1961 (for short the ‘Act’).
Aggrieved by the order of Ld. CIT (Appeals), the revenue has preferred this appeal before the Tribunal on the following effective grounds:-
1. “Whether on the facts and circumstances of the case and in law, the Ld. CIT (A) is justified in deleting the disallowance of additional depreciation of Rs. 70,95,028/- claimed u/s 32(1) (iia) of the I.T. Act, 1961? 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT (A) was justified in deleting the disallowance of additional depreciation of Rs. 70,95,028/- without appreciating the fact that as per Assessment Year: 2014-15 provisions of section 32(1) (iia) of the I.T. Act, 1961, additional depreciation is available only in the year in which the new plant & machinery is first put to use.? 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT (A) was justified in deleting the disallowance of additional depreciation of Rs. 70,95,028/- without considering that the second proviso to section 32(1) (iia) of the I.T. act, 1961 which clearly mandates that where an asset referred to in clause (i) or clause (ii) [ or clause iia)] of the said section, as the case may be, is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eighty days in that previous year, the deduction under this sub-section 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?
At the outset, the Ld. counsel for the respondent/assessee pointed out that the tax effect of the relief granted by the Ld. Commissioner of Income Tax (Appeals) is below Rs. 50 lacs and as per Circular No.17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India, the CBDT has revised the monetary limit for filing appeals before the ITAT from the existing limit of Rs. 20 lacs to Rs. 50 lacs. In the light of the aforesaid facts, the Ld. counsel submitted that this appeal is not maintainable and liable to be dismissed.