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TMI Blog2017 (8) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... those used in a business of running them on hire) acquired or put to use on or after April 1, 1990 says rate @ 15% We find that the issue in the instant case is covered by the judgment by the Hon'ble Delhi High Court in Ansal Properties and Infrastructure Ltd. (2012 (4) TMI 469 - DELHI HIGH COURT) and M/s Filmkarft Productions (I) Ltd. (2015 (7) TMI 1193 - ITAT MUMBAI). We follow the above decisions and allow the appeal filed by the assessee. - ITA No. 3623/MUM/2012 - - - Dated:- 28-4-2017 - Shri Joginder Singh ( Judicial Member ) And Shri N. K. Pradhan ( Accountant Member ) Assessee by : Shri K. K. Ved, AR Revenue by: Shri B.S. Bist, DR ORDER Per N. K. Pradhan, AM This is an appeal filed by the assessee. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncept of block of assets and treating plant and machinery and motor cars and vehicles as separate blocks even though same percentage of depreciation; namely 15% is prescribed for the aforesaid assets. 3. The Ld. Counsel of the assessee submits before the Tribunal that the assessee would not press ground No. 1 of this appeal. Hence ground No. 1 is dismissed as not pressed. 4. We now come to ground No. 2 of this appeal. Briefly stated, the facts are that during the year under consideration, the assessee sold certain assets. Its effect has been reflected in the depreciation (as per I.T. Rules) in the following manner:- Block of assets Rate of Dep. WDV as on 01.04.2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the block value remains there, there cannot be any short term capital loss. The A.O. disallowed the claim of set off of short term capital gain on sale of plant and machinery against the WDV of motor car block of asset on the following reasons:- (i) It is only since A.Y. 2006-07 that the rate of depreciation on motor car and plant machinery are the same i.e. 15%. Prior to that, the rate of depreciation on the motor car block and plant machinery block were different (20% 25% respectively). (ii) In the tax audit report the assessee has itself treated motor car and plant and machinery as different blocks of assets. (iii) Once the block of assets is created, the same cannot be merged subsequently. (iv) Motor car and plant ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmann.com 770 (Delhi) and the order of the ITAT F Bench Mumbai in the case of M/s Filmkraft Productions (I) Ltd. vs. Additional CIT (ITA No. 7358/Mum/2012). 7. On the other hand, the Ld. D.R. relied on the order passed by the Ld. CIT(A). 8. We have heard the rival submissions and perused the relevant material of record. We begin with the decisions cited before us. In Ansal Properties Infrastructure Ltd. (supra), during the period relevant to the Assessment Year 1989-90, the respondentassessee had sold the entire plant and machinery of their paper division and had stopped and ceased to carry on business in their paper division with effect from 2nd June, 1987. The Assessing Officer after examining the factual matrix came to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee having same rate of depreciation and not assets of one division or unit having same rate of depreciation. In the case of M/s Filmkart Productions (I) Ltd. (Supra) the assessee is a film producer, distributor and exhibitor. The assessee is also having income from property, income from other sources and capital gains. While scrutinizing the return of income, the AO noticed that the assessee has sold machinery and has realized positive income of ₹ 30,75,231/-. The A.O. noticed that the assessee has adjusted the same against WDV of motor car claiming that both the block of assets have same rate of depreciation, hence profit on one can be adjusted against the pending WDV of the other. The A.O. held that the block of asset pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee having the same rate of depreciation and not assets of only one unit. Block 5 is depicted below: Number Nature of asset Rate of depreciation Block 5 Plant machinery Any plant or machinery (not covered by Block 6, 7, 8, 9, 10, 11 12) and motor cars (other than those used in a business of running them on hire) acquired or put to use on or after April 1, 1990 15% We find that the issue in the instant case is covered by the judgment by the Hon'ble Delhi High Court in Ansal Properties and Infrastructure Ltd. (supra) and the order of the Co-ordinate Bench in M/s Filmkarft Productions (I) Ltd. (supra). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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