Serum Institute of India Ltd. v. Additional Commissioner of Incometax

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The Tax Publishers2012 TaxPub(DT) 1916 (Pune-Trib) : (2012) 135 ITD 0069 : (2012) 147 TTJ 0594 : (2012) 072 DTR 0089 IN THE ITAT PUNE BENCH A I.C. SUDHIR, J.M. & D. KARUNAKARA RAO, A.M. Serum Institute of India Ltd. v. Additional CIT ITA No. 948 (Pune) of 2005 A.Y. 2001-02 18 January, 2012 Functional test should be adopted to decide whether assets in question constitute plant and machinery Section 32 of the Income-tax Act, 1961 - Depreciation - Allowability/rate of - Assessment year 2001-02 Appellant by : B.K. Khare, M.P. Mahajani and R.D. Onkar Respondent by : Hareshwar Sharma ORDER *D. Karunakara Rao, A.M.* This appeal by the assessee is directed against the order of the Commissioner (Appeals)-II, Pune dated 7-1-2005 for the assessment year 2001-02. 2. During the proceedings before us and at the very outset, the assessee filed a chart containing groundwise analysis. In the chart, assessee referred to respective para nos. from the orders of the Revenue and the comments furnished on each of the ground raised in the appeal. Further, the counsel mentioned grounds 1 (a), 1(b), 3, 5(c), are not pressed. Considering the same, we proceed to dismiss the same as not pressed. 3. Ground 2 relates to reclassification of Plant & Machinery as Furniture. The ground reads as follows. '2. The Commissioner (Appeals) erred in holding that addition to the Fixed Assets amounting to Rs. 19,43,791 being cost of Stools, Tables, Stainless Steal racks, SS cupboards, SS trolleys, SS trays etc (located in Factory premises) is not part of Plant and Machinery and thereby confirming the depreciation a allowance thereon @ 10% (i.e. the rate applicable to furniture and fixtures) instead of allowing the same @ 25%(applicable to Plant & Machinery)' SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 1916 (Pune-Trib) : (2012) 135 ITD 0069 : (2012) 147 TTJ 0594 : (2012) 072 DTR 0089

IN THE ITAT PUNE BENCH A

I.C. SUDHIR, J.M. & D. KARUNAKARA RAO, A.M.

Serum Institute of India Ltd. v. Additional CIT

ITA No. 948 (Pune) of 2005

A.Y. 2001-02

18 January, 2012

Functional test should be adopted to decide whether assets in question constitute plant and machinery

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowability/rate of - Assessment year 2001-02

Appellant by : B.K. Khare, M.P. Mahajani and R.D. Onkar

Respondent by : Hareshwar Sharma

ORDER

D. Karunakara Rao, A.M.

This appeal by the assessee is directed against the order of the Commissioner (Appeals)-II, Pune dated 7-1-2005 for the assessment year 2001-02.

2. During the proceedings before us and at the very outset, the assessee filed a chart containing groundwise analysis. In the chart, assessee referred to respective para nos. from the orders of the Revenue and the comments furnished on each of the ground raised in the appeal. Further, the counsel mentioned grounds 1 (a), 1(b), 3, 5(c), are not pressed. Considering the same, we proceed to dismiss the same as not pressed.

3. Ground 2 relates to reclassification of Plant & Machinery as Furniture. The ground reads as follows.

'2. The Commissioner (Appeals) erred in holding that addition to the Fixed Assets amounting to Rs. 19,43,791 being cost of Stools, Tables, Stainless Steal racks, SS cupboards, SS trolleys, SS trays etc (located in Factory premises) is not part of Plant and Machinery and thereby confirming the depreciation a allowance thereon @ 10% (i.e. the rate applicable to furniture and fixtures) instead of allowing the same @ 25%(applicable to Plant & Machinery)'