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TMI Blog2024 (6) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... these appeals relates to deletion of disallowance of claim of depreciation. 3. Since, the facts are identical in all appeals, we are referring to the facts of ITA No.1430/Del/2023 pertaining to Assessment Year 2011-12. Briefly the facts are, the assessee is a resident corporate entity. As stated by the Assessing Officer, the main objects of the assessee are manufacture and distribution of flexible laminates. The Assessing Officer has further stated that the assessee came into existence as a result of demerger of the rubber thread unit of M/s Dharmpal Satyapal Ltd. in a scheme of demerger approved by the Hon'ble Delhi High Court vide order dated 11.09.2007. In course of assessment proceedings, the Assessing Officer, while verifying the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, from the aforesaid observations of the special auditor, the Assessing Officer concluded that the blocks of assets acquired by the assessee from M/s Dharampal Satyapal Ltd. as a result of the scheme of demerger, since, were acquired out of amount of excise duty exemption accounted as deferred government grants in the books of M/s Dharampal Satyapal Ltd., in terms of explanation 10 to section 43(1) of the Act, the actual cost of such assets to the resulting company i.e. the assessee shall be nil as the entire cost of the assets has been met by the Central Government through Central Excise Exemption. On the aforesaid premises, the Assessing Officer disallowed assessee's claim of depreciation. 5. Contesting the aforesaid disallowance, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He placed on record the orders passed by the Tribunal in this regard. He further submitted that the decision of the Tribunal in case of M/s Abhisar Buildwell Pvt. Ltd., AY 2011-12 has been confirmed by the Hon'ble jurisdictional High Court vide order dated 24.07.2019 in ITA No.240/2019. Thus, he submitted, in view of the binding precedent laid down by the Co-ordinate Bench/Hon'ble jurisdictional High Court, the issue has to be decided in favour of the assessee. 8. We have considered rival submissions and perused the materials available on record. We have also applied our mind to the decisions of the Co-ordinate Bench and the Hon'ble jurisdictional High Court in case of M/s. Abhisar Buildwell Pvt. Ltd. on identical issue. Undisputedly, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.09.2007, effective from 01st April, 2006. As per the scheme of demerger, the building, plant and machinery and other assets of the rubber thread unit came to the assessee. Whereas, the assets of flexible packaging unit came to another resulting company M/s Avichal Buildcon Pvt. Ltd.. It is the case of the Revenue that the central excise duty exemption availed by M/s Dharampal Satyapal Ltd. in respect of the rubber thread unit and flexible packaging unit will go to reduce the cost of the assets. Hence, the actual cost of the assets to the assessee would be after deduction of the amount of Central Excise duty exemption given by the Central Government. 10. In the backdrop of Revenue's aforesaid contentions, the issue has to be examined. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0IC of the Act, the effect would be revenue neutral. It is a fact on record that Revenue's appeal against the aforesaid decision of the Tribunal has been dismissed by the Hon'ble jurisdiction High Court. Thereafter, the Tribunal has consistently expressed similar view, while deciding the appeals for Assessment Years 2012-13 and 2013-14, vide order dated 09.08.2019 in ITA No.5129 and 5130/Del/2016, for Assessment Year 2014-15 in ITA No.5825/Del/2017, order dated 10.09.2021 and for Assessment Year 2015-16, in ITA No.2419/Del/2018 dated 15.09.2021. Having carefully examined the facts and materials on record, we do not find any factual difference between appeal relating to impugned assessment year and the appeals for past assessment years decid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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