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TMI Blog2014 (5) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... nd distinctly sold in the market – thus, the assessee is engaged in the activities of production and manufacture of article or thing and is eligible for additional depreciation – Decided against Revenue. - ITA No. 4323/Del/2012 - - - Dated:- 30-4-2014 - Shri R. P. Tolani And Shri D. K. Srivastava,JJ. For the Appellant : Shri Satpal Singh Sr. DR For the Respondent : Shri Suresh Malik CA ORDER Per R. P. Tolani, J. M: This is revenue s appeal against the order of CIT(A)-XV, New Delhi dated 1-5-2012 relating to A.Y. 2008-09. Following grounds are raised: 1. Whether ld. CIT(A) was correct On facts and circumstances of the case and in law in deleting the disallowance of Rs. 8,69,139/- made by the AO on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal filed by the Revenue were as under: 1. Whether ld. CIT(A) was correct on facts and circumstances of the case and in law in deleting the disallowance of Rs. 13,85,238/- made by the AO on account of royalty expenses. 2. Whether ld. CIT(A) was correct on facts and circumstances of the case and in law in deleting the disallowance of Rs. 5,99,464/- made by the AO on account of additional depreciation. 3. The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time of hearing? 2. The Hon ble Tribunal heard the matter on 13-09-2012 and pronounced the order on 21-09-2012. In the said order, the ground no. 1 3 raised by the Revenue were dismissed. Regarding ground no. 2, the Hon ble Bench con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rozen products, on the other hand, involves a 3 days thawing process. The frozen topping is kept in deep freezer at the same temperature. From here, packets are taken for thawing in chiller (1-4 degree Celsius). The toppings get ready to use in 3 days. The shelf life of all the toppings is only 4 hours. 3.4. On receiving orders from the customer, pizzas are prepared using desired toppings and put in ovens. All veg and non-veg toppings, sauces and cheese are kept in different bins at a defined temperature and are served according to order. 3.5. Likewise for manufacturing of pasta, a generic term for Italian variants of noodles, food made from dough of flour, water and/ or eggs that is boiled. It is a traditional Italian preparation mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.7. Reliance is placed on ITAT Ahmedabad Bench in the case of Deepkiran Foods (P) Ltd. Vs. ACIT 155 TTJ 57, holding that the assessee s business of preparing food items like pratha, samosa, dhokla amount to manufacture and income was eligible for deduction u/s 10B. The ITAT besides relying on catena of judgments distinguished the applicability of ratio of decision in the case of Indian Hotels Ltd. Vs. ITO others 112 Taxman 48 (SC) by following observations: 13. On the basis of material on record, we find that the assessee has claimed deduction u/s 10B in the past assessment years and the claim of the assessee was allowed while framing the assessments framed u/s 143(3) and the assessments have attained finality. It was submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is not a manufacturing process. Surely labour is employed and something is converted into something else, a product which is of value and is used, and in that sense the chips are a new production as a result of a manufacturing process. 3.9. Thus, the assessee s activity is of manufacture and production of article or thing and therefore additional depreciation is allowable. 4. Ld. DR relied on the order of assessing officer. 5. We have heard rival submissions and gone through the entire material available on record. Apropos the issue of royalty, the ITAT in earlier years has decided the same in favour of the assessee. Respectfully following the same, we dismiss ground no. 1 raised by the revenue. 5.1. Apropos ground no. 1, i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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