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TMI Blog2017 (5) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... itution of the Society. He was not justified to assume that three governments who are promoters of the Society have given subsidy instead of contribution for creation of the Society. Here the governments are doing business themselves by constituting the Society. It is not a benefit given by the government for any particular assessee or class of assessees by exercising its Legislative powers. The ld.CIT(A) has considered this aspect and therefore allowed the claim of the assessee. After going through the order of the ld.CIT(A), we do not find any error in it - appeal dismissed - decided against Revenue. - ITA No.78 and 79/Ahd/2014 - - - Dated:- 1-5-2017 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equest of Shri Chirag Shah, hearing was adjourned to 18.4.2017. Again on 17.4.2017 he moved an application which is somewhat identically worded. He seeks adjournment. We find that on record he has not filed his power of attorney and he has not assigned any reason for the adjournment. Application is vague and none has attended the hearing on behalf of the assessee. It appears that Shri Chirag Shah thought that once an application was moved, there was no need to appear on behalf of the assessee, and adjournment would be granted as matter of right. We do not appreciate this type of conduct at the end of the assessee. Therefore, we do not grant adjournment to the assessee and proceed to hear the appeals ex parte qua the assessee with the assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28.3.2012 in both years. After hearing the assessee, he disallowed depreciation to the assessee. 7. Dissatisfied with the disallowance, the assessee carried out the matter in appeal before the ld.CIT(A). The ld.CIT(A) has allowed depreciation to the assessee by following order of the ITAT, Indore Bench. The ld.CIT(A) has observed that similar Societies were situated in Madhya Pradesh and Maharashtra, where identical activities were carried and depreciation under similar circumstances was allowed to those units at Indore and Maharashtra. The finding of the ld.CIT(A) in the Asstt.Year 2007-08 in this connection reads as under: 3.2 I have carefully considered the rival contentions. I find that the facts of the case are identical to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;ble ITAT while dealing with the case of Indo German Tool Room Indore on identical facts has deleted the disallowance of depreciation claim made by the A.O. by invoking explanation-10 of sec.43 of the IT.Act. The Hon'ble Bench observed as under :- We have carefully considered the rival contentions and deliberated on the case laws cited by the Ld. Authorized Representative in the context of factual matrix of the case. In the instant case, the assessee being a society set up by the Government of India, for carrying on activity of providing technical and consultancy services for small scale unit. It got Government grant towards capital funds. By utilizing these funds and its own capital, it acquired plant and machinery and building. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. is directed to delete the disallowance of the claim of depreciation mad in the case of the appellant. The second ground of appeal is allowed. Appellant gets a relief of ₹ 2,58,77,712/-. 8. With the assistance of the ld.DR we have gone through the record carefully. Short controversy involved in these appeals is whether the contributions made by three governments, viz. Govt. of India, Govt. of Gujarat and German Government was to be treated as a contribution on behalf of the promoters or it was to be treated as a subsidy by the Government. According to the AO, land etc. were granted by the Govt. of Gujarat is to be treated as subsidy, which does not carry any costs to the assessee, and therefore, it could not claim depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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