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TMI Blog2014 (9) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of sale of cylinders of Rs. 16,40,000 despite the clear provisions of section 43(6)(c)(B) of the Act?" 2. The facts leading the present Tax Appeal in nutshell are as under; 3. The assessee-Company filed its return of income on an income of Rs. 18,374/-, for which an intimation u/s. 143(1)(a) of the Income Tax Act (hereinafter referred to as 'the Act') dated 04.01.1994 was issued by the Assessing Officer. However, along with the aforesaid intimation, the Assessing Officer also forwarded an Adjustment Explanatory Sheet of the same date in which the appellant's income was increased by an amount of Rs. 12,38,611/- in respect of the 3 different items. The first two items were disallowable under Rule 6-D amounting to Rs. 3,639/-. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of law. 7. Shri. Nitin Mehta, learned Advocate appearing on behalf of the appellant-revenue has vehemently submitted that the learned Tribunal has materially erred in, prima facie, holding that the adjustment made under Section 143(1)(a) of the Act in respect of sale of cylinders of Rs. 16,40,000/-, despite the clear provisions of Section 43(6)(c)(B)(ii) of the Act. It is submitted that, as such, when initially Respondent-assessee claimed 100 per cent depreciation on the value of each cylinder, there after, it was not open to the Respondent-assessee to claim depreciation at 25% on all the cylinders, considering the same as block of assets. It is submitted that, therefore, considering the provisions of Section 143(1)(a) of the Act, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim 100 per cent depreciation on the purchase of the cylinders for an aggregate amount of Rs. 23,50,800/-, as provided under Section 143(1) (a) or whether the cylinders to be treated as forming part of block of assets, entitled to depreciation at the rate of 100 per cent or whether the deduction claimed in respect of entire costs of cylinders in view of the proviso to Sub-section (ii) of Section 43(6)(c)(B) of the Act were debatable and contentious and there can conceivably two opinions, both the learned CIT(A) as well as the learned Tribunal have rightly held that the adjustments made by the AO under the provisions of Section 32(6)(c)(B) of the Act were beyound the scope of limited jurisdiction under Section 143(1)(a) of the Act. 10. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he adjustment made by the AO under Section 143(1)(a) of the Act has been set aside. 13. Considering the provisions of Section 143(1)(a) of the Act, we see no reason to interfere with the impugned judgment and order passed by the learned Tribunal, as no error appears to have been committed by the learned Tribunal in holding the aforesaid prima facie adjustment made by the AO in exercise of powers under Section 143(1)(a) of the Act as beyound the scope / ambit of the provisions of Section 143(1) (a) of the Act. 14. Under the circumstances, present appeal deserves to be dismissed and is accordingly, DISMISSED. The question of law is decided in favour of the Respondent-assessee and against the appellant-Revenue. In the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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