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2015 (10) TMI 2106 - AT - Income TaxAdditional depreciation on wind mill - assessee had made a claim in the revised computation of income statement filed before completion of assessment proceedings - Held that - Admittedly, the assessee had missed the bus in the opportunity provided to him by the statute by filing the revised return within the time limit prescribed u/s 139(5) of the Act. However, that does not prevent the assessee from making its legitimate claims and its doors are not completely shut. The decision in the case of Goetze India Limited 2006 (3) TMI 75 - SUPREME Court clearly states that consideration of the valid claim of the assessee other than by way of a valid return can be entertained by the appellate authorities and more so the ITAT. The Hon ble Supreme Court in the case of CIT vs Kanpur Coal Syndicate (1964 (4) TMI 18 - SUPREME Court) had held that the powers of CIT(A) is co-terminus with that of the AO; that the First Appellate Authority has wider powers, in that he can do what the ITO can do and can also direct him to do what he failed to do. . The question of limitation on the ld. AO would have no relevance in view of the wider powers of the First Appellate Authority. Reliance in this regard is placed on the decision of the Hon ble Allahabad High Court in the case of Smt. Raja Rani Gulati vs CIT reported in (2011 (10) TMI 78 - Allahabad High Court ). We also find that the veracity of the claim of additional depreciation on wind mill was never disputed by the ld. AO. It is also seen that there was a specific query raised by the ld. AO during the course of assessment proceedings on the depreciation issue. The addition was made on the sole ground that no plausible explanation was offered by the assessee regarding the fact why it had not claimed the same in the revised return filed by him. We find that this issue on merits is now settled in favour of the assessee by the following decisions of the Hon ble Madras High Court in the case of CIT vs VTM Limited 2009 (9) TMI 35 - MADRAS HIGH COURT . Thus we allow the claim of additional depreciation on wind mill to the assessee - Decided in favour of assessee.
Issues:
1. Granting additional depreciation on wind mill without original claim. 2. Validity of revised computation in assessment proceedings. 3. Applicability of Goetze India Ltd. case. 4. Judicial precedents supporting additional depreciation claim. Issue 1 - Granting additional depreciation on wind mill without original claim: The appeal involved deciding if the ld. CIT(A) correctly granted additional depreciation on a wind mill despite the claim not being made in the original or revised income tax return but only in the revised computation during assessment proceedings. The assessee engaged in manufacturing and trading filed the original return in 2009, later revised in 2011, claiming additional depreciation on the wind mill during assessment. The ld. AO rejected the claim citing the Goetze India Ltd. case, emphasizing claims must be made through a valid return. However, the ld. CIT(A) allowed the claim, leading to the revenue's appeal. Issue 2 - Validity of revised computation in assessment proceedings: The debate centered on whether the revised computation filed by the assessee during assessment proceedings was valid for claiming additional depreciation on the wind mill. The ld. DR argued the claim was not made in the revised return within the statutory time limit, relying on the Goetze India Ltd. case. Conversely, the ld. AR contended that the appellate authorities could consider revised computations, supported by judicial precedents from the Hon'ble Madras High Court, asserting the validity of the revised computation. Issue 3 - Applicability of Goetze India Ltd. case: The case analyzed the applicability of the Goetze India Ltd. judgment, which held that claim amendments must be made through revised returns. The ld. CIT(A) allowed the claim based on the revised computation, challenging the revenue's argument citing the Goetze India Ltd. case. The tribunal referred to the wider powers of the First Appellate Authority, emphasizing that legitimate claims could be entertained beyond revised returns, backed by the CIT vs Kanpur Coal Syndicate case. Issue 4 - Judicial precedents supporting additional depreciation claim: The judgment relied on judicial precedents from the Hon'ble Madras High Court, including CIT vs VTM Limited, CIT vs Hi Tech Arai Ltd., and CIT vs Texmo Precision Castings, affirming the allowance of additional depreciation on wind mills. The tribunal dismissed the revenue's appeal, following the established judicial precedents and granting the claim of additional depreciation on the wind mill to the assessee. In conclusion, the tribunal dismissed the revenue's appeal, allowing the claim of additional depreciation on the wind mill based on the revised computation filed during assessment proceedings and supported by relevant judicial precedents.
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