DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2 1 1 AHMEDABAD, AHMEDABAD vs. KHYATI CHEMICALS PRIVATE LIMITED, AHMEDABAD

In the result, the appeal filed by the Revenue is hereby allowed

Bench: DR. BRR Kumar (Vice President), Shri T. R. Senthil Kumar (Judicial Member)

depreciation in accordance with provisions of section 32(1)(ii) r.w.s. Rule 5(1) and Appendix 1 and section 32(1)(iia) at the time of giving appeal effect.” 4. Aggrieved against the appellate order, the Revenue is in appeal before us raising the following Grounds of Appeal: 1. Whether on facts and circumstances of the case

SHARMA CARS PVT. LTD.,,AHMEDABAD vs. THE DY. CIT, CIRCLE-8, NOW CIRCLE-4(1)(1),, AHMEDABAD

In the result, appeal of the assessee is partly allowed for statistical purpose

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./ Ita No. 1655/Ahd/2015 "नधा"रण वष"/Assessment Year: 2011-12 Sharma Cars P.Ltd. Dcit, Cir.8 “Kayakalp”, N.H. No.8 Vs Ahmedabad. Naroda, Ahmedabad 382330. Pan: Aadcs 0305 E अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri T.P. Hemani & Shri P.B. Parmar, Ar Revenue By : Shri Vinod Tanwani, Sr.Dr

40A(2) of the I.T. Act. During the assessment proceedings as well as the appellate proceedings the appellant had submitted that there were considerable increase in profit margin of appellant company this year, the directors are qualified and experienced. Similar arguments have been given in the case of related persons. Another argument given is that the business of the company

CREST SPECIALITY RESINS PRIVATE LIMITED,KHEDA, GUJARAT vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(2), AHMEDABAD (NOW DCIT, CIRCLE 1(1)(1), AHMEDABAD), AHMEDABAD, GUJARAT

In the result, the appeal of the assessee is allowed for both the years under consideration

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

40A(2) of the Act. ITA Nos. 1583&1585/Ahd/2024 Crest Speciality Resins Pvt. Ltd. vs. ACIT (Now DCIT) Asst. Years –2015-16 & 2016-17 - 3– Depreciation on electrical installation 9) The learned CIT(A) has erred in law and in fact in confirming (he action of the learned AO in making disallowance of the depreciation of Rs, 5,54.435/- claimed

SHIVAM WATER TREATERS PVT. LTD.,,AHMEDABAD vs. THE DY. CIT, CIRCLE-8, AHMEDABAD

In the result appeal of the assessee is partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

2) of the Act which can be brought to tax in India hands of the director as part of salary. 20.6 It is also interesting to note that the depreciation is an allowance and not an expenditure which has to be allowed in pursuance to the provisions of section 32 of the Act irrespective of its use by the director

SHIVAM WATER TREATERS PVT. LTD.,,AHMEDABAD vs. THE DY. CIT, CIRCLE-4(1)(1),, AHMEDABAD

In the result appeal of the assessee is partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

2) of the Act which can be brought to tax in India hands of the director as part of salary. 20.6 It is also interesting to note that the depreciation is an allowance and not an expenditure which has to be allowed in pursuance to the provisions of section 32 of the Act irrespective of its use by the director

SHIVAM WATER TREATERS PVT. LTD.,,AHMEDABAD vs. THE ACIT, (OSD), CIRCLE-8,, AHMEDABAD

In the result appeal of the assessee is partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

2) of the Act which can be brought to tax in India hands of the director as part of salary. 20.6 It is also interesting to note that the depreciation is an allowance and not an expenditure which has to be allowed in pursuance to the provisions of section 32 of the Act irrespective of its use by the director

THE DCIT, CIRCLE-8,, AHMEDABAD vs. SHIVAM WATER TREATERS PVT. LTD.,, AHMEDABAD

In the result appeal of the assessee is partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

2) of the Act which can be brought to tax in India hands of the director as part of salary. 20.6 It is also interesting to note that the depreciation is an allowance and not an expenditure which has to be allowed in pursuance to the provisions of section 32 of the Act irrespective of its use by the director

THE DCIT ( INTERNATIONAL TAXATION ),, AHMEDABAD vs. BLACK PEARL SERVICES LIMITED, G.S.E.C. LTD., AHMEDABAD

Appeal of the Revenue is dismissed

Bench: Shri Waseem Ahmed & Shri Ms Madhumita Royआयकर अपील सं./Ita Nos. 2813-2815/Ahd/2017 "नधा"रण वष"/Asstt. Years: 2011-2012 To 2013-14 The D.C.I.T, Black Pearl Services Limited, (International Taxation), Vs. 2Nd Floor, Gujarat Chamber Of Ahmedabad Commerce Building, ‘’Sangram.’’ Ashram Road, Ahmedabad. Pan: Aaecb1176H

section 40A(2)(b) of the Act being payment of interest to the related party. In view of the above, the AO disallowed the amount of interest debited to the profit and loss account for Rs. 2,84,70,757/- and the depreciation

THE DCIT ( INTERNATIONAL TAXATION ),, AHMEDABAD vs. BLACK PEARL SERVICES LIMITED, G.S.E.C. LTD., AHMEDABAD

Appeal of the Revenue is dismissed

Bench: Shri Waseem Ahmed & Shri Ms Madhumita Royआयकर अपील सं./Ita Nos. 2813-2815/Ahd/2017 "नधा"रण वष"/Asstt. Years: 2011-2012 To 2013-14 The D.C.I.T, Black Pearl Services Limited, (International Taxation), Vs. 2Nd Floor, Gujarat Chamber Of Ahmedabad Commerce Building, ‘’Sangram.’’ Ashram Road, Ahmedabad. Pan: Aaecb1176H

section 40A(2)(b) of the Act being payment of interest to the related party. In view of the above, the AO disallowed the amount of interest debited to the profit and loss account for Rs. 2,84,70,757/- and the depreciation

THE DCIT ( INTERNATIONAL TAXATION ),, AHMEDABAD vs. BLACK PEARL SERVICES LIMITED, G.S.E.C. LTD., AHMEDABAD

Appeal of the Revenue is dismissed

Bench: Shri Waseem Ahmed & Shri Ms Madhumita Royआयकर अपील सं./Ita Nos. 2813-2815/Ahd/2017 "नधा"रण वष"/Asstt. Years: 2011-2012 To 2013-14 The D.C.I.T, Black Pearl Services Limited, (International Taxation), Vs. 2Nd Floor, Gujarat Chamber Of Ahmedabad Commerce Building, ‘’Sangram.’’ Ashram Road, Ahmedabad. Pan: Aaecb1176H

section 40A(2)(b) of the Act being payment of interest to the related party. In view of the above, the AO disallowed the amount of interest debited to the profit and loss account for Rs. 2,84,70,757/- and the depreciation

M/S. GUJARAT AMBUJA EXPORTS LTD.,,AHMEDABAD vs. THE PR. CIT-1, AHMEDABAD

In the result the order of the Ld

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), Ms. SUCHITRA KAMBLE (Judicial Member)

2 Issue of claim of deduction under Section 32AC of the Act is neither erroneous nor prejudicial to the interest of revenue: The Ld. PCIT erred in not appreciating the law, ie, difference between the "Installation" and "Put to use and further erred in merely giving direction to conduct inquiries to verify the claim of depreciation under Section 35AC

CREST SPECIALITY RESINS PRIVATE LIMITED,KHEDA, GUJARAT vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(2), AHMEDABAD (NOW DCIT, CIRCLE 1(1)(1),AHMEDABAD), AHMEDABAD, GUJARAT

In the result, the appeal of the assessee is allowed for both the years under\nconsideration

section 40A(2)(b) of the Act by\nrelying upon the order passed in AY 2013-14.\n\n7) The learned CIT(A) erred in law and in fact in not appreciating the fact that\nin Appellant's own case, for the identical payment, the Hon'ble ITAT has deleted the\ndisallowance made

THE DY. CIT, CIRCLE-1(2),, AHMEDABAD vs. M/S. ARTEX APPARELS,, AHMEDABAD

Accordingly, the said ground of appeal is also allowed

Bench: Shri Rajpal Yadav & Shri T. S. Kapoorआयकर अपील सं./I.T.A. No. 1450/Ahd/2017 With Cross Objection No.24/Ahd/2019 ("नधा"रण वष" / Assessment Years : 2012-13)

Section 40A(2)(b) of the Act are applicable on expenses claimed as deduction whereas the assessee had purchased a capital asset and therefore, learned CIT(A) had rightly allowed relief to the assessee by holding as under: “15. Ground # 10 challenges the action of AO in in making an addition of an amount of Rs.3,17,941/- by considering

SUN PHARMACEUTICALS INDUSTRIES LTD.,,BARODA vs. THE ACIT, CENTRAL CIRCLE-1, BARODA

In the result, the appeal of the Revenue is partly allowed

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy1. आयकर अपील सं./Ita No.1659/Ahd/2015 2. आयकर अपील सं./Ita No.1689/Ahd/2015 ("नधा"रण वष"/Assessment Year : 2008-09 ) बनाम/ 1. Sun Pharmaceuticals 1. The Acit Industries Ltd. Cen.Cir-1 Vs. “Sparc” Tandalja Baroda – 20 2. The Acit 2. Sun Pharmaceu- Central Circle-1 Ticals Industries Baroda Ltd. Baroda. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcs 3124K (अपीलाथ"/Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By : Shri S.N. Soparkar, Ar ""यथ" क" ओर से/Respondent By: Shri R.C. Panday, Cit-Dr सुनवाई क" तार"ख/ Date Of Hearing 28/03/2019 घोषणा क" तार"ख /Date Of Pronouncement 20/06/2019 आदेश / O R D E R Per Waseem Ahmed: The Captioned Cross-Appeals Have Been Filed At The Instance Of The Assessee & Revenue Against The Order Of The Commissioner Of Income Tax (Appeals)–2, Vadodara [Cit(A) In Short] Vide Appeal No.Cab/(A)- 2/387/2014-15 Dated 31/03/2015 Arising In The Assessment Order Passed Under S.143(3) R.W.S.147 Of The Income Tax Act, 1961(Hereinafter Referred To As "The Act") Dated 14/02/2014 Relevant To Assessment Year (Ay) 2008-09. Ita Nos.1659/Ahd/2015 (By Assessee) & Ita No.1689/Ahd/2015 (By Revenue) Sun Pharmaceuticals Industries Ltd. Vs. Acit Asst.Year - 2008-09 2

40A(2)(b) of the Act. The details filed by the assessee in Annexure 2 are available on record. 17. We also note that AO in his assessment order has made the observation as detailed under: As per the information available with this office Unimed was primarily was functioning as job worker. ITA Nos.1659/Ahd/2015 (by assessee) and ITA No.1689/Ahd/2015

THE ACIT,MEHSANA CIRCLE,, MEHSANA vs. M/S. NEPTUNE INDUSTRIES LTD.,, MEHSANA

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No.2701/Ahd/2011 "नधा"रण वष"/Asstt. Year: 2008-2009 A.C.I.T., M/S.Neptune Industries Ltd. Mehsana Circle, Vs. Gidc Estate, Phase-Ii, Mehsana. Dediyasan, Mehsana. Pan : Aabcn4995M

2) of the Act which is relevant when the predecessor cannot be found then the assessment of the income of the previous year in which the succession took place upto the date of succession and of the previous year preceding that year shall be made on the successor in like manner and to the same extent as it would have

AURA SECURITIES PVT.LTD.,,AHMEDABAD vs. THE ACIT.,CIRCLE-1,, AHMEDABAD

In the result the appeal of the assessee is allowed

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No.834/Ahd/2012 "नधा"रण वष"/Asstt. Year: 2008-2009 Dcit, Aura Securities Pvt. Ltd. Circle-1, V Akhay Building, B/H, Vadilal Ahmedabad. S. House, 53, Shrimali Society, Navrangpura, Ahmedabad-380009 Pan: Aabct4637N आयकर अपील सं./Ita No.986/Ahd/2012 िनधा"रण वष"/Asstt. Year: 2008-2009 Aura Securities Pvt. Ltd. Acit, Akhay Building, B/H, Vadilal Vs. Circle-1, House, 53, Shrimali Society, Ahmedabad. Navrangpura, Ahmedabad-380009 Pan: Aabct4637N

40A(2) of the Act under the head business & profession. 10.11 Thus after considering the above facts, we are of the opinion that AO is not correct in challenging the sales consideration decided by the parties. There is no mechanism in the law, as discussed above, which allows AO to take the listed price of a share in place

AURA SECURITIES PVT. LTD.,AHMEDABAD vs. DY. COMMISSIONER OF INCOME TAX,, AHMEDABAD

In the result the appeal of the assessee is allowed

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No.834/Ahd/2012 "नधा"रण वष"/Asstt. Year: 2008-2009 Dcit, Aura Securities Pvt. Ltd. Circle-1, V Akhay Building, B/H, Vadilal Ahmedabad. S. House, 53, Shrimali Society, Navrangpura, Ahmedabad-380009 Pan: Aabct4637N आयकर अपील सं./Ita No.986/Ahd/2012 िनधा"रण वष"/Asstt. Year: 2008-2009 Aura Securities Pvt. Ltd. Acit, Akhay Building, B/H, Vadilal Vs. Circle-1, House, 53, Shrimali Society, Ahmedabad. Navrangpura, Ahmedabad-380009 Pan: Aabct4637N

40A(2) of the Act under the head business & profession. 10.11 Thus after considering the above facts, we are of the opinion that AO is not correct in challenging the sales consideration decided by the parties. There is no mechanism in the law, as discussed above, which allows AO to take the listed price of a share in place

GUJARAT INFRAPIPES PVT. LTD.,,VADODARA vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, VADODARA

In the result, the appeal filed by the Revenue is hereby dismissed

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) relating to the Assessment Year (AY) 2013-14. For the sake of convenience, these appeals were ITA Nos. 813 & 987/Ahd/2017 A.Y. 2013-14 M/s. Gujarat Infrapipes Pvt. Ltd. Vs. DCIT 2 heard together and are being disposed of by way of this consolidated order. 2