Creamline Dairy Products Ltd. v. Dy. CIT

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The Tax PublishersITA Nos. 20/Hyd/20l2 (A.Y.2005-06) & 1828/ Hyd/2011 2013 TaxPub(DT) 0132 (Hyd-Trib) : (2013) 051 (II) ITCL 0065 : (2012) 139 ITD 0517 : (2012) 020 ITR (Trib) 0510 INCOME TAX ACT, 1961 --ReassessmentValidity Additional depreciation on machinery used for standardization and pasteurization--Assessee submitted that at the time of completing assessment under section 143(3) all the information was available to assessing officer and he had duly considered all the material facts for the purpose of assessment and allowed the claim of assessee with regard to additional depreciation and the same cannot be considered again by issuing notice under section 148 as it would amount to change of opinion. *Held:* Reopening of assessment for the purpose of reconsideration of additional depreciation on machinery used for standardization and pasteurization of milk on the reason that additional depreciation was not allowable as assessee was not engaged in the manufacture of article or thing was justified on the basis of order of the Tribunal Pune Special Bench in the case of B. G. Chitale (2008) 305 ITR 81 (Pune-Trib) : 2008 TaxPub(DT) 2066 (Pune-Trib) which held that standardization and pasteurization cannot be considered as a manufacture or production activity. Also there was no necessity of using standardized or pasteurized milk for the purpose of production of curd and ghee or other milk products. Consequently, assessee was not entitled for additional depreciation. Income Tax Act, 1961, Section 32 Income Tax Act, 1961, Section 147 INCOME TAX ACT, 1961 --Business expenditureAllowability Foreign travel expenses--Assessee did not furnished bifurcation of expenditure relating to business and pleasure trips, being so, Commissioner (Appeals) directed assessing officer to disallow two-third of foreign travel expenditure. Assessee pleaded he could furnish details of foreign travel as relating to business and pleasure trips. *Held:* Issue was remitted to assessing officer with a direction to get bifurcation and if fails to furnish the same then pass consequential order in terms of Commissioner (Appeals) order. Income Tax Act, 1961, Section 37 IN the ITAT, Hyderabad 'B' Bench Chandra Poojari (A.M.) & Saktijit Dey (J.M.) Creamline Dairy Products Ltd. v. Dy. CIT ITA Nos. 20/Hyd/20l2 (A.Y.2005-06) & 1828/Hyd/2011 A.Y. 2008-09 5 October, 2012 Appellant by : K. A. Sai Prasad SUBSCRIBE FOR FULL CONTENT

The Tax PublishersITA Nos. 20/Hyd/20l2 (A.Y.2005-06) & 1828/ Hyd/2011
2013 TaxPub(DT) 0132 (Hyd-Trib) : (2013) 051 (II) ITCL 0065 : (2012) 139 ITD 0517 : (2012) 020 ITR (Trib) 0510

INCOME TAX ACT, 1961

--ReassessmentValidity Additional depreciation on machinery used for standardization and pasteurization--Assessee submitted that at the time of completing assessment under section 143(3) all the information was available to assessing officer and he had duly considered all the material facts for the purpose of assessment and allowed the claim of assessee with regard to additional depreciation and the same cannot be considered again by issuing notice under section 148 as it would amount to change of opinion. Held: Reopening of assessment for the purpose of reconsideration of additional depreciation on machinery used for standardization and pasteurization of milk on the reason that additional depreciation was not allowable as assessee was not engaged in the manufacture of article or thing was justified on the basis of order of the Tribunal Pune Special Bench in the case of B. G. Chitale (2008) 305 ITR 81 (Pune-Trib) : 2008 TaxPub(DT) 2066 (Pune-Trib) which held that standardization and pasteurization cannot be considered as a manufacture or production activity. Also there was no necessity of using standardized or pasteurized milk for the purpose of production of curd and ghee or other milk products. Consequently, assessee was not entitled for additional depreciation.

Income Tax Act, 1961, Section 32

Income Tax Act, 1961, Section 147

INCOME TAX ACT, 1961

--Business expenditureAllowability Foreign travel expenses--Assessee did not furnished bifurcation of expenditure relating to business and pleasure trips, being so, Commissioner (Appeals) directed assessing officer to disallow two-third of foreign travel expenditure. Assessee pleaded he could furnish details of foreign travel as relating to business and pleasure trips. Held: Issue was remitted to assessing officer with a direction to get bifurcation and if fails to furnish the same then pass consequential order in terms of Commissioner (Appeals) order.

Income Tax Act, 1961, Section 37

IN the ITAT, Hyderabad 'B' Bench

Chandra Poojari (A.M.) & Saktijit Dey (J.M.)

Creamline Dairy Products Ltd. v. Dy. CIT

ITA Nos. 20/Hyd/20l2 (A.Y.2005-06) & 1828/Hyd/2011

A.Y. 2008-09

5 October, 2012

Appellant by : K. A. Sai Prasad