Birla Corporation Ltd. v. DCIT

ACIT, Cen, Cir-4(4), Kolkata vs. M/S Electrosteel Castings Ltd., Kolkata

In the result, both, the appeal of the revenue and the cross objections of the assessee are dismissed

Bench: Shri Rajpal Yadav, Vice- & Shri Girish Agrawalita Nos.2303 & 2304/Kol/2019 Assessment Years: 2014-15 & 2015-16 Assistant Commissioner M/S. Electrosteel Casting Ltd. Vs. Of Income-Tax, Central (Pan: Aaace4975B) Circle-4(4), Kolkata. (Appellant) (Respondent) & C.O. Nos. 24 & 25/Kol/2020 In Ita Nos.2303 & 2304/Kol/2019 Assessment Years: 2014-15 & 2015-16 M/S. Electrosteel Casting Assistant Commissioner Of Vs. Ltd. Income-Tax, Central Circle- 4(4), Kolkata. (Cross Objector) (Respondent) Present For: Department By - Shri Deba Kumar Sonowal & Shri Tushar Dhawal Singh, Cit Assessee By - Shri S. K. Tulsiyan, Advocate & Ms. Puja Somani, Ca Date Of Hearing : 17.03.2022 Date Of Pronouncement : 17.05.2022 O R D E R Per Girish Agrawal: Both These Appeals By The Revenue & The Cross Objection By The Assessee Are Directed Against The Separate Orders Passed By The Ld. Cit(A)-22 Kolkata Vide Appeal No. 46/Cit(A)-22/2014-15/17-18/Kol & 133/Cit(A)-22/2015-16/18-19/Kol Dated 31.07.2019 For A.Ys. 2014-15 & 2015-16 Against The Separate Assessment Orders Passed U/S 143(3) R.W.S. 144C Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Passed By Dcit, Central Circle – 4(4), Kolkata, Dated 29.01.2018 & Acit, Central Circle-4(4), Kolkata Dated 29.12.2018 Respectively. C.O. Nos. 24 & 25/Kol/2020 Electrosteel Casting Ltd. Ays 2014-15 & 2015-16 2. Shri Deba Kumar Sonowal & Tushar Dhawal Singh, Cit Appeared For The Revenue & Sri S. K. Tulsiyan, Advocate & Ms. Puja Somani, Ca Appeared For The Assessee.

…he said subsidy cannot be reduced from the actual cost of the fixed assets u/s. 43(1) read with Explanation 10. Following the aforesaid decision of the Supreme Court in case of P.J. Chemicals Ltd. the ITAT (Kolkata) in case of Birla Corporation Ltd. Vs. DCIT [69 SOT 217] held: “'According to us, assessee as rightly not .reduced the amount of subsidy received from the actual cost/WDV of the fixed assets while claiming depreciation. It is also a fact that revenue during scrutiny assessments of the assessee for A Y s 2002-03 to 2006-07 added the subsidy amount as revenue receipt but Tribunal has considered the recei…

ACIT, Cen.Cir.-4(4), Kolkata vs. M/S Electrsteel Castings Ltd., Kolkata

In the result, both, the appeal of the revenue and the cross objections of the assessee are dismissed

Bench: Shri Rajpal Yadav, Vice- & Shri Girish Agrawalita Nos.2303 & 2304/Kol/2019 Assessment Years: 2014-15 & 2015-16 Assistant Commissioner M/S. Electrosteel Casting Ltd. Vs. Of Income-Tax, Central (Pan: Aaace4975B) Circle-4(4), Kolkata. (Appellant) (Respondent) & C.O. Nos. 24 & 25/Kol/2020 In Ita Nos.2303 & 2304/Kol/2019 Assessment Years: 2014-15 & 2015-16 M/S. Electrosteel Casting Assistant Commissioner Of Vs. Ltd. Income-Tax, Central Circle- 4(4), Kolkata. (Cross Objector) (Respondent) Present For: Department By - Shri Deba Kumar Sonowal & Shri Tushar Dhawal Singh, Cit Assessee By - Shri S. K. Tulsiyan, Advocate & Ms. Puja Somani, Ca Date Of Hearing : 17.03.2022 Date Of Pronouncement : 17.05.2022 O R D E R Per Girish Agrawal: Both These Appeals By The Revenue & The Cross Objection By The Assessee Are Directed Against The Separate Orders Passed By The Ld. Cit(A)-22 Kolkata Vide Appeal No. 46/Cit(A)-22/2014-15/17-18/Kol & 133/Cit(A)-22/2015-16/18-19/Kol Dated 31.07.2019 For A.Ys. 2014-15 & 2015-16 Against The Separate Assessment Orders Passed U/S 143(3) R.W.S. 144C Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Passed By Dcit, Central Circle – 4(4), Kolkata, Dated 29.01.2018 & Acit, Central Circle-4(4), Kolkata Dated 29.12.2018 Respectively. C.O. Nos. 24 & 25/Kol/2020 Electrosteel Casting Ltd. Ays 2014-15 & 2015-16 2. Shri Deba Kumar Sonowal & Tushar Dhawal Singh, Cit Appeared For The Revenue & Sri S. K. Tulsiyan, Advocate & Ms. Puja Somani, Ca Appeared For The Assessee.

…he said subsidy cannot be reduced from the actual cost of the fixed assets u/s. 43(1) read with Explanation 10. Following the aforesaid decision of the Supreme Court in case of P.J. Chemicals Ltd. the ITAT (Kolkata) in case of Birla Corporation Ltd. Vs. DCIT [69 SOT 217] held: “'According to us, assessee as rightly not .reduced the amount of subsidy received from the actual cost/WDV of the fixed assets while claiming depreciation. It is also a fact that revenue during scrutiny assessments of the assessee for A Y s 2002-03 to 2006-07 added the subsidy amount as revenue receipt but Tribunal has considered the recei…

DCIT, Circle-6(1), Kolkata vs. M/S National Engineering Industries Ltd., Kolkata

In the result, the appeal of the Revenue stands dismissed

Bench: Shri Sanjay Garg & Shri Rajesh Kumari.T.A. No.2109/Kol/2019 Assessment Year: 2015-16 Dcit, Circle-6(1), Kolkata………………………………………….……Appellant Vs. M/S National Engineering Industrial Ltd…..……..........……...…..…..Respondent 11Th Floor, Birla Building, 9/1, R.N. Mukherjee Road, Bbd Bagh, Kolkata-1. [Pan: Aaacn9969L] Appearances By: Shri Akkal Dudhwewala, Fca & Shri Rakesh Jhunjhunwala, Ar Appeared On Behalf Of The Appellant. Shri Amitava Bhattacharya, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 13, 2021 Date Of Pronouncing The Order : December 16, 2021 Hearing Through Video Conferencing Order Per Sanjay Garg: The Present Appeal Has Been Preferred By The Revenue Against The Order Dated 17.06.2019 Of The Commissioner Of Income Tax (Appeals)-2, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 143(3) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). The Revenue In This Appeal Has Taken The Following Grounds Of Appeal: “1. Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Has Erred In Law In Allowing The Claim Of Balance Additional Depreciation On The Assets Which Were Put To Use In Earlier Year. 2. That The Appellant Craves For Leave To Add To Delete, Modify Any Of The Grounds Of Appeal Before Or At The Time Of Hearing..” 2. At The Outset, It Is Noticed That The Appeal Filed By The Revenue Is Time-Barred By 18 Days. A Separate Application For Condonation Of The Said Delay Has Been Filed, Wherein Reasons For The Delay In Filing This Appeal Have Been Mentioned. Considering The Above Reasons, We Condone The Delay.

…brought in to enhance investments and hence the amendment is in the nature of a welfare measure. Moreover, it is also noted that there are three jurisdictional Hon'ble ITAT decisions in favour of the appellant namely: a. Birla Corporation Ltd. vs DCIT (2015) 69 SOT 217 (Kolkata ITAT) b. Century Enka Ltd. vs DCIT (2015) 37 ITR (Trib) 644 (Kolkata ITAT) c. Universal Cables Ltd. vs DCIT (2015) 57 taxmann.com 95 (Kolkata ITAT) Thus, following the aforesaid decisions, the said ground of appeal is allowed and decided in favour of the appellant. The Ld. AO is directed to allow additional depreciation of Rs. 6,36,83,752…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

Bench: Shri S.S.Godara & Dr. A.L.Saini

…the rate of 10% shall be allowed in the subsequent year. - DCIT vs Cosmos Films Ltd (139 ITD 628) (ITAT Delhi) - Century Enka Ltd Vs DCIT (154 ITD 426) (ITAT Kolkata) - Universal Cables Ltd Vs DCIT (68 SOT 307) (ITAT Kolkata) - Birla Corporation Ltd Vs DCIT (69 SOT 217) (ITAT Kolkata) - ACIT Vs SIL Investment Ltd (54 SOT 54) (ITAT Chennai) - Ashok Leyland Ltd Vs DCIT (67 taxmann.com 48) (ITAT Chennai) Apart from the above the appellant also referred to the second proviso to Sec 32(1) which also laid down the above proposition and clarified it beyond doubt. 3. Upon giving due consideration to the submissions made…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

Bench: Shri S.S.Godara & Dr. A.L.Saini

…the rate of 10% shall be allowed in the subsequent year. - DCIT vs Cosmos Films Ltd (139 ITD 628) (ITAT Delhi) - Century Enka Ltd Vs DCIT (154 ITD 426) (ITAT Kolkata) - Universal Cables Ltd Vs DCIT (68 SOT 307) (ITAT Kolkata) - Birla Corporation Ltd Vs DCIT (69 SOT 217) (ITAT Kolkata) - ACIT Vs SIL Investment Ltd (54 SOT 54) (ITAT Chennai) - Ashok Leyland Ltd Vs DCIT (67 taxmann.com 48) (ITAT Chennai) Apart from the above the appellant also referred to the second proviso to Sec 32(1) which also laid down the above proposition and clarified it beyond doubt. 3. Upon giving due consideration to the submissions made…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

Bench: Shri S.S.Godara & Dr. A.L.Saini

…the rate of 10% shall be allowed in the subsequent year. - DCIT vs Cosmos Films Ltd (139 ITD 628) (ITAT Delhi) - Century Enka Ltd Vs DCIT (154 ITD 426) (ITAT Kolkata) - Universal Cables Ltd Vs DCIT (68 SOT 307) (ITAT Kolkata) - Birla Corporation Ltd Vs DCIT (69 SOT 217) (ITAT Kolkata) - ACIT Vs SIL Investment Ltd (54 SOT 54) (ITAT Chennai) - Ashok Leyland Ltd Vs DCIT (67 taxmann.com 48) (ITAT Chennai) Apart from the above the appellant also referred to the second proviso to Sec 32(1) which also laid down the above proposition and clarified it beyond doubt. 3. Upon giving due consideration to the submissions made…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…ncial assistance to entrepreneurs in setting up new units/expanding existing units in the backward areas. 3.3.1 The case of the assessee is also covered by the decision of ITAT(Kolkata) in the following cases:  ITAT(Kolkata) in case of Birla Corporation Ltd.[69 SOT 2171  ITAT(Kolkata) in case of DCIT Vs Rasoi Ltd. (ITA N0.1398/Kol/2011)(affirmed by the Calcutta High Court) 3.3.2 Following the aforesaid decisions, the ITAT(Kolkata) in the assessee's own case (for AYs 2003- 04 to 2011-12) at para 68 allowed the claim of depreciation in full, i.e. without reducing the amount of subsidy from the cost of capital ass…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…ncial assistance to entrepreneurs in setting up new units/expanding existing units in the backward areas. 3.3.1 The case of the assessee is also covered by the decision of ITAT(Kolkata) in the following cases:  ITAT(Kolkata) in case of Birla Corporation Ltd.[69 SOT 2171  ITAT(Kolkata) in case of DCIT Vs Rasoi Ltd. (ITA N0.1398/Kol/2011)(affirmed by the Calcutta High Court) 3.3.2 Following the aforesaid decisions, the ITAT(Kolkata) in the assessee's own case (for AYs 2003- 04 to 2011-12) at para 68 allowed the claim of depreciation in full, i.e. without reducing the amount of subsidy from the cost of capital ass…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…ncial assistance to entrepreneurs in setting up new units/expanding existing units in the backward areas. 3.3.1 The case of the assessee is also covered by the decision of ITAT(Kolkata) in the following cases:  ITAT(Kolkata) in case of Birla Corporation Ltd.[69 SOT 2171  ITAT(Kolkata) in case of DCIT Vs Rasoi Ltd. (ITA N0.1398/Kol/2011)(affirmed by the Calcutta High Court) 3.3.2 Following the aforesaid decisions, the ITAT(Kolkata) in the assessee's own case (for AYs 2003- 04 to 2011-12) at para 68 allowed the claim of depreciation in full, i.e. without reducing the amount of subsidy from the cost of capital ass…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…ncial assistance to entrepreneurs in setting up new units/expanding existing units in the backward areas. 3.3.1 The case of the assessee is also covered by the decision of ITAT(Kolkata) in the following cases:  ITAT(Kolkata) in case of Birla Corporation Ltd.[69 SOT 2171  ITAT(Kolkata) in case of DCIT Vs Rasoi Ltd. (ITA N0.1398/Kol/2011)(affirmed by the Calcutta High Court) 3.3.2 Following the aforesaid decisions, the ITAT(Kolkata) in the assessee's own case (for AYs 2003- 04 to 2011-12) at para 68 allowed the claim of depreciation in full, i.e. without reducing the amount of subsidy from the cost of capital ass…

DCIT, Circle-6(1), Kolkata vs. M/S National Engineering Industries Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

Bench: Shri J. Sudhakar Reddy, Am & Shri A.T. Varkey, Jm]

…brought in to enhance investments and hence the amendment is in the nature of a welfare measure. Moreover, it is also noted that there are three jurisdictional Hon’ble ITAT decisions in favour of the appellant namely: a. Birla Corporation Ltd. vs DCIT (2015) 69 SOT 217 (Kolkata ITAT) b. Century Enka Ltd. vs DCIT (2015) 37 ITR (Trib) 644 (Kolkata ITAT) Universal Cables Ltd. vs DCIT (2015) 57 taxmann.com 95 (Kolkata ITAT) c. Thus, following the aforesaid decisions, the said ground of appeal is allowed and decided in favour of the appellant. The Ld. AO is directed to allow additional depreciation of Rs. 6,36,83,752…