DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2 1 1 AHMEDABAD, AHMEDABAD vs. SABARKANTHA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED, AHMEDABAD

Facts

The Revenue appealed against the CIT(A)'s order for AY 2015-16, which had deleted disallowances made by the Assessing Officer (AO). The disallowances pertained to a deduction claimed under section 80P(2)(d), additional depreciation for a subsequent assessment year, and additional depreciation on Milk Cans and Equipment. The CIT(A) had based its decision on consistent rulings by the ITAT and the High Court in the assessee's own case for earlier assessment years.

Held

The Income Tax Appellate Tribunal (ITAT) found no infirmity in the CIT(A)'s order, noting that all issues raised by the Revenue were 'legacy issues' previously decided in favor of the assessee. The ITAT upheld the deletion of disallowances related to the deduction under section 80P(2)(d), 10% additional depreciation, and additional depreciation on Milk Cans and Equipment. Consequently, the Revenue's appeal was dismissed.

Key Issues

1. Eligibility for deduction under section 80P(2)(d) of the Income Tax Act. 2. Allowance of carry forward of additional depreciation to a subsequent assessment year. 3. Qualification of Milk Cans and Equipment as Plant and Machinery for additional depreciation under section 32.