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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 ..... each cylinders etc., are debatable issues and, as such, there are two views possible, and in such a situation, while processing return u/s 143(1)(a) of the Act, it was not open to the AO and or it was beyond the jurisdiction of the AO to make adjustment and consequently the adjustment made by the AO u/s 143(1)(a) of the Act has been set aside – the order of the Tribunal is upheld – Decided against revenue. - Tax Appeal No. 173 of 2000 - - - Dated:- 13-8-2014 - M. R. Shah And K. J. Thaker,JJ. For the Appellant : Mr. Nitin Mehta For the Respondent : Mr. B. D. Karia ORDER (Per : Honourable Mr. Justice M. R. Shah) 1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned ITAT in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessed submitted rectification application under Section 154 of the Act, Dated : 21.09.1993, which came to be rejected by the AO. The assessee, therefore, carried the matter in appeal before the learned CIT(A) and the learned CIT(A) allowed the said appeal vide order dated 31.03.1994., allowing the addition of aforesaid amount of ₹ 12,38,611/-. 5. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A), the Revenue preferred appeal before the learned Tribunal and the learned Tribunal vide impugned judgment and order dismissed the appeal preferred by the appellant-Revenue and confirmed the order passed by the learned CIT(A), mainly on the ground that the issue involved was beyound the scope / ambit of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assessee ought to have reduced the sale value of cylinders from the block of assets eligible for depreciation @ 100% and not from the block of assets eligible for depreciation @ 25%. It is submitted that, therefore, the learned Tribunal materially erred in quashing and setting aside the prima facie adjustment made by the AO under Section 143(1)(a) of the Act on the ground that the same was not permissible under Section 143(1)(a) of the Act. It is, further, submitted that the learned Tribunal has materially erred in observing that, as such, the issue is debatable and it was not permissible for the AO to make prima facie adjustments in exercise of power under Section 143(1)(a) of the Act. 8. Making the above submissions, it was requested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO made the adjustments while processing the return under Section 143(1)(a) in respect of sale of cylinders at an amount of ₹ 16,66,800/-. It is required to be noted that the assessee claimed 100 per cent depreciation on the said cylinders, on sale of cylinders by reducing the same from plant and machinery. However, it was the case on behalf of the AO that it should have been reduced from value of each cylinder. The assessee submitted application under Section 154 of the Act, which came to be rejected. On an appeal, learned the CIT(A) as well as the learned Tribunal has held that at the issues with respect to the depreciation claimed by the Respondent-assessee on the value of entire plant and machinery or on the value of each cylinder ..... X X X X Extracts X X X X X X X X Extracts X X X X
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