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Chennai Radha Engineering Works v/s Dcit Corporate Circle 1(2)

    M.P.No. 120/Chny of 2018, I.T.A.No. 1972/Chny of 2017

    Decided On, 24 August 2018

    At, Income Tax Appellate Tribunal Chennai

    By, THE HONOURABLE MR. ABRAHAM P. GEORGE
    By, ACCOUNTANT MEMBER & THE HONOURABLE MR. GEORGE MATHAN
    By, JUDICIAL MEMBER

    For the Appellant: N. Vijayakumar, C.A. For the Respondent: R. Clement Ramesh Kumar, Additional CIT D.R.



Judgment Text

George Mathan, Judicial Member:

1. MP No.120/CHNY/2018 is a Miscellaneous Petition filed by the Assessee against the Order of the Tribunal in ITA No.1972/CHNY/2017 dated 03.11.2017.

2. Mr.N.Vijayakumar represented on behalf of the Assessee, and Mr.R.Clement Ramesh Kumar represented on behalf of the Revenue.

3. It was submitted by Authorized Representative of assessee that in the page No.3 of the Order of Tribunal dated 03.11.2017 has recorded as follows:-

"That, therefore, the assets under reference are being used by the assessee in its business of manufacturing and trading in Tipper, etc., is not in doubt."

It was a submission that the assessee's business was not trading in 'Tipper', but as has been extracted in para-2 of the order as follows:-

"2. The assessee is a company in the business of manufacturing of components and spares for conveyor systems, operation and maintenance of conveyor systems at Thermal Power Stations, Ports, and power generation units."

It was a submission that there is an error in the Order of Tribunal in page No.3, which requires rectification. Thus, the ld.A.R prayed that the words "in Tipper, etc.," in the third page of the Order of Tribunal may be deleted.

4. In reply, ld.D.R raised no objection.

5. We have considered the rival submissions. Admittedly, an error has been crept in the Order of Tribunal in respect of nature of business of the assessee in page-3 of the Order of Tribunal dated 03.11.2017. Consequently, the same stands rectified and page-3 of the last paragraph reads as follows:-

"There is no dispute with regard to the assessee's business, so that it is not in the business of hiring out of motor cars/lorries, or otherwise hiring them to third parties, or even in the business of transportation of goods. That, therefore, the assets under reference are being used by the assessee in its business of manufacturing and trading is not in doubt. Under these primary, undisputed facts, on what basis, we wonder, does the assessee claim depreciation at a higher rate, which is only where the relevant assets are used in the business of running them on hire. The position stands clarified by the CBDT vide its Circular No.652 supra and, at any rate, attaining finality per the decision in Gupta Global exim (P.) Ltd.(Supra). We are, therefore, in complete agreement with the order by the Tribunal and, accordingly,

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upheld the disallowance of the additional depreciation of 15 percent on the relevant assets. We decide accordingly. 5. In the result, the assessee's appeal is dismissed." 6. In the result, Miscellaneous Petition filed by the assessee is allowed.
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