ITA No. 851/JPR/2024 Divya Agrofood Product Pvt. Ltd. vs. The DCIT, ACIT, Central Circle-2, Kota

Parties Involved

Facts Summary

The assessee, Divya Agrofood Product Pvt. Ltd., is a private limited company engaged in the business of procuring, manufacturing, processing, and selling of milk and milk-related products. The company filed its return of income on 27.09.2013 declaring income at Nil and the assessment under section 143(3) was completed on 23.03.2016. The case was reopened to verify the additional depreciation claimed for an amount of Rs. 1,11,06,994/-. The Assessing Officer (AO) noted that the assessee had claimed additional depreciation on firefighting, ink jet printer, other utilities, and RO plant. The AO contended that these assets do not fall in the category of plant and machinery and therefore, the claim of additional depreciation on those assets considering them as plant and machinery was not considered and was added to the income of the assessee. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), which was dismissed ex-parte due to non-prosecution of the appeal.…

Legal Issues

• 1. Whether the Ld. CIT(A)-Faceless grossly erred in passing the ex-parte order?
• 2. Whether the Ld. AO grossly erred in reopening the case u/s 147/148 of I.T. Act, 1961 and the Ld. CIT(A) have not considered the ground?
• 3. Whether the Ld. AO grossly erred in not allowing the additional depreciation on certain plant and machinery which are necessary and important P and M of the company engaged in dairy business by disallowing the said additional depreciation and made addition of Rs. 1,11,06,994.00 and the Ld. CIT(A) have not looked the ground being passed ex-parte order?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Shri Dharam Singh Vs. The Income tax Officer

  Delhi bench

• M/s. R K Sipani Foundation Vs. The Income Tax Officer (E), Ward – 2, Bangalore

  Bangalore benchAY 2013-14Allowed

• The Dy. C.I.T Vs. M/s Kurele Packaging Pvt Ltd

• Ankit Metal & Power Ltd. vs. Deputy Commissioner of Income tax

  Kolkata Bench benchAY 2008-09 & 2012-13Dismissed

• Shri Dinesh Narayan Shetty Vs. The Income Tax Officer

  SMC-‘A’ Bench, Bangalore benchAY 2017-18Allowed

• Veerprabhu Auto Pvt. Ltd. Vs. A.C.I.T., CC-2(4), Kolkata