Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 1/8 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.01.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.1207 of 2009 AREVA T & D India Limited [formerly known as ALSTOM Ltd.,] No.314/315, Anna Salai, Chennai 600 018. ... Appellant Vs. Asst. Commissioner of Income Tax, Company Circle I 1] 121, Nungambakkam High Road, Chennai 600 034. ... Respondent Appeal filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, Bench "A" Chennai dated 03.11.2008 passed in I.T.A.No.290/Mds/2006 relating to Assessment year 2002-03.. For Appellant : Mr.M.P.Senthil Kumar For Respondent : Mr.T.Ravikumar Senior Standing Counsel http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 2/8 JUDGMENT (Judgment of Court was delivered by DR.VINEET KOTHARI, J.) Both learned counsels at bar had submitted that Coordinate Bench of this Court, in T.C.A.Nos.1443 & 1444 of 2007 dated 12.11.2013 between same parties M/s.Alstom T & D India Limited, which is now called as 'AREVA T & D India Limited', had remanded case back to learned Income Tax Appellate Tribunal on both issues of claim of warranty provision and on issue of allowability of higher rate of depreciation at 40% on plastic moulds. However, after said remand under order of this Court dated 12.11.2013, both learned counsels for parties do not have any information as to what happened in Tribunal after such remand. 2.The learned counsel for Assessee Mr.M.P.Senthil Kumar submitted that for present assessment year 2002-03 also, both questions of law admitted in present appeal are one and same, matter may be remitted back to learned Tribunal. Therefore, both issues for all three years assessment can be decided simultaneously. relevant observations of Coordinate Bench of http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 3/8 this Court from order dated 12.11.2013 are quoted below for ready reference. "6. It is seen from decision of Apex Court reported in [2009] 314 ITR 62 (SC) [Rotork Controls India P.Ltd. vs. Commissioner of Income Tax] that decision of this Court reported in [2007]293 ITR 311(Mad) [cited supra] was reversed holding that warranty provisions are made because of assessee's present obligation, as result of past events resulting in outflow of resources and reliable estimate made on amount of obligation and such provision was tenable in law. Thus, Apex Court held that provision of liability would depend on nature of business, nature of sales, nature of product manufactured and sold and scientific method of accounting adopted by assessee and it would also depend upon historical trend and upon number of articles produced. 7. Considering decision of Apex Court giving guidelines for considering claim of warranty provision and there being no discussion on merits of case by Income Tax Appellate Tribunal, this Court holds that order of Income Tax Appellate Tribunal has to be set aside. Accordingly, order of Income Tax Appellate Tribunal is set aside and matter is restored to file of Income Tax Appellate Tribunal for its consideration on basis of decision of Apex Court referred to http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 4/8 above on issue Nos.1 and 2 regarding provisions towards warranty. 8. As regards issue raised by assessee, claiming higher depreciation on plastic moulds, Income Tax Appellate Tribunal followed its earlier decision relating to assessment years 1994- 95 to 1996-97 and allowed Revenue's appeal. said issue is also under challenge in these Tax Case (Appeals). 9. Both sides agreed that issue Nos.3 and 4 raised herein as regards claim of depreciation at 40% are same as that was raised in assessee's own case, which was decided by this Court in Tax Case (Appeal) Nos.422, 424, 2455 and 2538 of 2006 dated 03.09.2012. 10. reading of order passed by this Court dated 03.09.2012 in Tax Case (Appeal) Nos.422, 424, 2455 and 2538 of 2006 [M/s.Alstom T & D India Limited, Chennai- 600 043 vs. Joint Commissioner of Income Tax, Chennai], would show that matter was remitted back to Assessing Officer for considering claim of depreciation in context of contention taken by assessee that unit at Pondicherry is separate unit engaged in manufacture of moulds and that said unit was granted relief under Section 80HH of Act. assessee also placed before this Court, acknowledgement from Government of India, Ministry of Industry, Department of Industrial Development, Entrepreneur Assistance Unit that unit at Pondicherry was engaged in manufacture of http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 5/8 switches, plastic plugs, sockets etc. Thus, for purpose of considering relief of depreciation at 40%, this Court remitted matter back to Assessing Officer for purpose of finding out whether recognition was granted to unit at Pondicherry as separate unit and if material showed proves that Pondicherry unit was established as separate unit then following decision reported in 203 ITR 614 [Commissioner of Income Tax vs. Amco Batteries Ltd.], assessee would be entitled to claim depreciation at 40%, for which assessee was permitted to produce Certificate of Registration as regards Pondicherry unit recognised as separate unit so as to enable Assessing Officer to pass orders on grant of relief as per provisions of Act. 11. As far as present case is concerned, since we have already remitted matter back to Income Tax Appellate Tribunal for deciding issue on provision for warranty, we feel that as regards claim of depreciation also matter may be restored back to file of Income Tax Appellate Tribunal. 12. Accordingly, matter is remitted back to file of Income Tax Appellate Tribunal for deciding issue on claim of depreciation on plastic moulds at 40% and Tribunal shall call for report from Assessing Officer to pass further orders on claim of depreciation. We also direct assessee to produce necessary Certificate before Income Tax Appellate Tribunal as http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 6/8 was produced before this Court in Tax Case (Appeal) Nos.422, 424, 2455 and 2538 of 2006 [cited supra] relating to assessment years 1995- 96 and 1996-97 for arriving at decision in this regard." 3.Accordingly, we dispose of present Appeal filed by Assessee and setting aside order of learned Income Tax Appellate Tribunal dated 03.11.2008 for assessment year 2002-03, we remand case back to Income Tax Appellate Tribunal for deciding said appeal in accordance with law afresh in terms of aforesaid order passed by Coordinate Bench of this Court on 12.11.2013 for previous assessment years viz., 2000-01 and 2001-02. 4.The Tax Case Appeal is disposed of accordingly. There shall be no order as to costs. (V.K.J.) (R.S.K.J.) 28.01.2020 Index: Yes/No Speaking Order : Yes/No Sgl http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 7/8 To Income Tax Appellate Tribunal, 'A' Bench, Chennai. http://www.judis.nic.in Judgment in TCA No.1207/2009 dated 28.01.2020 (AREVA T & D India Limited Vs. Asst. Commissioner of Income Tax) 8/8 DR.VINEET KOTHARI, J. And R. SURESH KUMAR, J. Sgl T.C.A.No.1207 of 2009 28.01.2020 http://www.judis.nic.in Areva T & D India Limited [formerly known as Alstom Ltd.,] v. Asst. Commissioner of Income-tax, Company Circle I[1], Chennai