2011 (1) TMI 1352 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against CIT(A) order for assessment year 2006-07 regarding treatment of railway sidings as plant for depreciation.

The Appellate Tribunal ITAT Hyderabad, comprising Shri G.C.Gupta, Vice President, and Shri Chandra Poojari, Accountant Member, heard the appeal by the Revenue against the order of the Commissioner of Income-tax(Appeals) for the assessment year 2006-07. The grounds of appeal raised by the Revenue included the contention that the CIT(A) erred in law and should not have directed to allow depreciation at the rate applicable to plant for railway sidings. The Departmental Representative supported the Assessing Officer's order, while the assessee's counsel relied on the CIT(A) order and cited relevant decisions from the Hon'ble Calcutta High Court, Hon'ble Karnataka High Court, and the Rajkot Bench of the Tribunal. After considering the submissions, the Tribunal found that the issue of whether railway sidings should be considered part of the plant was in favor of the assessee based on the decisions cited. Specifically, the Hon'ble Calcutta High Court had held that railway sidings are to be treated as part of 'plant'. As no contrary decision was presented by the Revenue, the Tribunal upheld the CIT(A)'s order, stating that there was no error in following the decisions of the High Courts and holding that railway sidings are indeed part of 'plant'. Consequently, the grounds of appeal by the Revenue were dismissed, and the Revenue's appeal was ultimately dismissed by the Tribunal on 7.1.2011.