CIT v. Refrigeration & Allied Industries Ltd.

M/S. Business India Television International Ltd., Mumbai vs. ITO, New Delhi

In the result, the appeal of the Revenue as well as the appeal of the assessee for the Assessment Year 2002-03 is dismissed; whereas the appeal of the assessee for the Assessment

Bench: Shri Amit Shukla & Shri O. P. Kant

…ivity does not mean that business has been closed down and assessee would be ineligible for claim of depreciation on the assets which were kept ready for use. Reliance was placed on the following decisions; i. CIT vs. Refrigeration & Allied Industries Ltd., 247 ITR 12 ii. CIT vs. GeoTech Construction Corporation 244 ITR 452, iii. Capital Bus Services (P), Ltd., 123 ITR 404. 18. Ld. CIT (A) after referring to the judgments of Hon'ble 13 I.T.A. No.4371, 4419/Del/2010 & 1358/Del/2013 Ltd., 187 Taxman 111; and CIT vs. Yamaha Motor India (P). Ltd, 226 CTR 304, held that in the concept of ‘block of assets’ used fo…

M/S. Kla India Public Ltd., Delhi vs. JCIT, Rohtak

In the result, the appeal of the assessee is allowed

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…n reason in the concerned assessment year, the assessee would not be denied the depreciation. This was so discussed and restated, after taking stock of various judgments, by a Division Bench of this Court in CIT v. Refrigeration & Allied Industries Ltd [2001] 247 ITR 12. In that case, the assessee owned a cold storage at Karnal. The machinery installed, was not put to use during the whole of the previous year. The non-user was on account of the fact that there was very weak crop of potatoes available in the season and potatoes did not come from the hirers in the cold storage. Therefore, there was no business from…

Container Corporation of India Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal of the revenue is partly allowed

Bench: Shri I. C. Sudhir & Shri Prashant Maharishicontainer Corporation Of India Ltd, Dcit, C-3, Mathura Road, Opp. Apollo Circle-3(1), Vs. Hospital, New Delhi New Delhi Pan:Aaacc1205A (Appellant) (Respondent) Acit, Container Corporation Of India Ltd, Circle-3(1), C-3, Mathura Road, Opp. Apollo Vs. New Delhi Hospital, New Delhi Pan:Aaacc1205A (Appellant) (Respondent) Container Corporation Of India Ltd, Acit, C-3, Mathura Road, Opp. Apollo Circle-3(1), Vs. Hospital, New Delhi New Delhi Pan:Aaacc1205A (Appellant) (Respondent) Dcit, Container Corporation Of India Ltd, Circle-3(1), C-3, Mathura Road, Opp. Apollo Vs. New Delhi Hospital, New Delhi Pan:Aaacc1205A (Appellant) (Respondent)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Container Corporation of India Ltd, DCIT, C-3, Mathura Road, Opp. Apollo Circle-3(1), Vs. Hospital, New Delhi New Delhi PAN:AAACC1205A (Appellant) (Respondent) ACIT, Container Corporation of India Ltd, Circle-3(1), C-3, Mathura Road, Opp. Apollo Vs. New Delhi Hospital, New Delhi PAN:AAACC1205A (Appellant) (Respondent) Container Corporation of India Ltd, ACIT, C-3, Mathura Road, Opp. Apollo Circle-3(1), Vs. Hospital, New Delhi New Delhi PAN:AAACC1205A (Appellant) (Respon…

DCIT, New Delhi vs. M/S. Galileo India Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…g decisions : (i). Stitchwell Qualitex (RF) vs. ITO 2015-TOIL-2184-HC-Del. (ii). National Thermal Power Corpn. Ltd. vs. CIT dt. 15.10.12(copy placed) (iii). Capital Bus Service P. Ltd. vs. CIT, 123 ITR 404 (iv). CIT vs. Refrigeration and Allied Ind. Ltd., 247 ITR 12. 15. Having considered the submissions of both the parties, we find no substance in this ground of appeal. It is a fact that the assessee had computed the depreciation on the reduced WDV only after reducing the assets sold. There is no material on record to assail the finding of the ld. CIT(A) that once an asset becomes a part of a block of ass…

Escolife It Services (P) Ltd., New Delhi vs. ITO, New Delhi

Appeals of the assessee are hereby allowed

Bench: Shri N. K. Saini & Shri Kuldip Singh

…50(2) under the head of profits chargeable to tax on the aspect of discarded machinery. 7. On the aspect of passive user, there are two decisions of two Division Benches of this Court in the cases reported as CIT vs. Refrigeration and Allied Industries Ltd., 247 ITR 12 and Capital Bus Services vs. CIT, 123 ITR 404. In this view of the matter, we need not refer the judgments of any other Court as we are bound by the earlier judgments of this Court. In fact, we also agree with the ratio of both the decisions which hold that as long as the machinery is available for use, though not actually used, it falls within th…

CIT-7

…claim since the plant and machinery in question was ready to use and was actually run on trial basis at the three stations. The ITAT referred to the decisions in CIT v. Reetu Finleys Pvt. Ltd. 286 ITR 652 (Del) and CIT v. Refrigeration & Allied Ind. Ltd. 247 ITR 12 (Del). Submissions of counsel 13. This Court has heard the submissions of Mr. N.P. Sahni, learned Senior standing counsel for the Revenue and Mr. Salil Aggarwal, learned counsel for the Respondent-Assessee. 14. Mr. Sahni sought to distinguish the decision of the Supreme Court in CIT v. Oracle Software India Limited (supra) on the groun…

Stitchwell Qualitex (Rf) vs. Income Tax Officer & Anr

The appeal is allowed with no order as to

…. (1981)128 ITR 675 (Mad) and CIT v. Refrigeration and Allied Industries 2015:DHC:7715-DB ITA 346/2002 Page 5 of 6 Ltd. (2001) 247 ITR 12 (Del). 9. The Supreme Court in Federation of Andhra Pradesh Chambers of Commerce v. State of Andhra Pradesh (supra), was interpreting the word "used" occurring in Section 3 of the Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963. The question in that case was whether the agricultural lands of the Assessee had been used for indust…

Commissioner of Income Tax-III vs. Arcotech Ltd (Formerly Sks Ltd.)

The appeal is disposed of

…reciation was a debatable issue. Passive use entitles an assessee to claim depreciation (see CIT versus Geo Tech Construction Corporation, [2000] 244 ITR 452 (Ker.) and Commissioner of Income Tax versus Refrigeration and Allied Industries Limited, [2001] 247 ITR 12). No manufacturing activities were conducted during the assessment year in question but the assessee had approached Board of Financial Reconstruction for rehabilitation of the company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. We also notice that penalty imposed in the last year for same reason was del…

CIT vs. Lakshmiji Sugar Mills Ltd

Appeals are dismissed

Bench: The Assessing Officer, The Respondent Assessee Had Submitted As Under:-

…n on account of all other expenses and depreciation on all other assets.” 5. Thereafter, the tribunal has referred to the word “used” and held that it includes both passive and active user. In CIT versus Refrigeration and Allied Industries Ltd. (2001) 247 ITR 12 (Del.), Section 32 of the Act was interpreted and the expression „used‟ was expounded and explained as: “Section 32 of the Act deals with depreciation. There is no requirement that the assets should be used for the whole of the assessment year in question. The term used in section 32(1) is “owned by assessee”, but that does not bring in a…

CIT vs. Lakshmiji Sugar Mills Ltd

Appeals are dismissed

Bench: The Assessing Officer, The Respondent Assessee Had Submitted As Under:-

…n on account of all other expenses and depreciation on all other assets.” 5. Thereafter, the tribunal has referred to the word “used” and held that it includes both passive and active user. In CIT versus Refrigeration and Allied Industries Ltd. (2001) 247 ITR 12 (Del.), Section 32 of the Act was interpreted and the expression „used‟ was expounded and explained as: “Section 32 of the Act deals with depreciation. There is no requirement that the assets should be used for the whole of the assessment year in question. The term used in section 32(1) is “owned by assessee”, but that does not bring in a…

CIT vs. Lakshmiji Sugar Mills Ltd

Appeals are dismissed

Bench: The Assessing Officer, The Respondent Assessee Had Submitted As Under:-

…n on account of all other expenses and depreciation on all other assets.” 5. Thereafter, the tribunal has referred to the word “used” and held that it includes both passive and active user. In CIT versus Refrigeration and Allied Industries Ltd. (2001) 247 ITR 12 (Del.), Section 32 of the Act was interpreted and the expression „used‟ was expounded and explained as: “Section 32 of the Act deals with depreciation. There is no requirement that the assets should be used for the whole of the assessment year in question. The term used in section 32(1) is “owned by assessee”, but that does not bring in a…

CIT vs. Lakshmiji Sugar Mills Ltd

Appeals are dismissed

Bench: The Assessing Officer, The Respondent Assessee Had Submitted As Under:-

…n on account of all other expenses and depreciation on all other assets.” 5. Thereafter, the tribunal has referred to the word “used” and held that it includes both passive and active user. In CIT versus Refrigeration and Allied Industries Ltd. (2001) 247 ITR 12 (Del.), Section 32 of the Act was interpreted and the expression „used‟ was expounded and explained as: “Section 32 of the Act deals with depreciation. There is no requirement that the assets should be used for the whole of the assessment year in question. The term used in section 32(1) is “owned by assessee”, but that does not bring in a…

CIT vs. Lakshmiji Sugar Mills Ltd

Appeals are dismissed

Bench: The Assessing Officer, The Respondent Assessee Had Submitted As Under:-

…n on account of all other expenses and depreciation on all other assets.” 5. Thereafter, the tribunal has referred to the word “used” and held that it includes both passive and active user. In CIT versus Refrigeration and Allied Industries Ltd. (2001) 247 ITR 12 (Del.), Section 32 of the Act was interpreted and the expression „used‟ was expounded and explained as: “Section 32 of the Act deals with depreciation. There is no requirement that the assets should be used for the whole of the assessment year in question. The term used in section 32(1) is “owned by assessee”, but that does not bring in a…

Commissioner of Income Tax

Accordingly, the appeal filed by the Revenue is dismissed with

…ITA 530/2011 Page 1 of 11 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA NO.530/2011 Reserved on : 28th November, 2011. % Date of Decision : 16th December, 2011. Commissioner of Income Tax .... Appellant Through : Mr. Kamal Sawhney, sr. standing counsel with Mr. Amit Shrivastava, Advocate. VERSUS Integrated Technologies Ltd. …..Respondent Through CORAM: HON'BLE MR. JUSTICE SANJI…