DCIT, Circle-16(1), Hyd, Hyderabad V. Natural Chemical Products P. Ltd., Hyd, Hyderabad

CO 27/HYD/2016

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4128 (ITAT-HYDERABAD)
• Duration Of Justice: 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: DB-A
• Assessment Year: 2005-2006
• Appeal Filed On: 15-06-2016
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Assessee Lawyers: D RANGA RAO
• Keywords: Revenue expenditure; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI J. SUDHAKARA REDDY, ACCOUNTANT MEMBER I.T.A. NO. 463/HYD/2016 ASSESSMENT YEAR: 2005-06 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD VS M/S. NATURAL CHEMICAL PRODUCTS PVT. LTD., HYDERABAD [PAN: AAACN6930F] (APPELLANT) (RESPONDENT) C.O.NO. 27/HYD/2016 (IN ITA NO. 463/HYD/2016) ASSESSMENT YEAR: 2005-06 M/S. NATURAL CHEMICAL PRODUCTS PVT. LTD., HYDERABAD [PAN: AAACN6930F] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD (CROSS-OBJECTOR) (RESPONDENT) FOR REVENUE : SHRI M. SITARAM, DR FOR ASSESSEE : SHRI D. RANGA RAO, AR DATE OF HEARING : 15-06-2016 DATE OF PRONOUNCEMENT : 17-06-2016 O R D E R THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, HYDERABAD, DATED 18-01-2016 FOR THE AY. 2005-06. ASSESSEE HAS RA ISED CROSS- OBJECTIONS AGAINST THE REVENUES APPEAL. 2. AFTER HEARING THE RIVAL CONTENTIONS, I FIND NO INFIR MITY IN THE ORDER OF THE FIRST APPELLATE AUTHORITY FOR THE FOLLOWIN G REASONS: I.T.A. NO. 463/HYD/16 C.O. NO. 27/HYD/16 M/S. NATURAL CHEMICAL PRODUCTS PVT LTD., :- 2 -: I. THE ASSESSEE HAS SALES OF MORE THAN RS. 3 CRORES DU RING THE YEAR; II. THE EXPENDITURE INCURRED AND CLAIMED AS REVENUE PERTAINS TO EARNING OPERATIONAL INCOME; THE NATURE OF THE EXPENDITURE HAS BEEN DEPICTED BY WAY OF A SCHEDULE B Y THE LD. CIT(A). A PERUSAL OF THE SAME DEMONSTRATES THA T THE EXPENDITURE IS IN THE REVENUE FIELD. III. THE ASSESSEE HAD NOT CLAIMED CAPITAL EXPENDITURE AS REVENUE. IN FACT IN CAPITALISED THE SAID EXPENDITURE INCURRED DURING RENOVATION OF THE PLANT. UNDER THESE CIRCUMSTANCES, THE FINDINGS OF THE FIRST APP ELLATE AUTHORITY THAT THE ASSESSEE HAS NOT CLAIMED ANY CAPITAL EXPENDITURE AS REVENUE EXPENDITURE ARE HEREBY UPHELD. APPEAL OF THE REVENUE IS DISMISSED. 3. THE ASSESSEES CROSS-OBJECTIONS ARE IN SUPPORT OF THE ORDER OF THE LD.CIT(A). SINCE, REVENUES APPEAL DISMISSED , ASSESSEES CROSS-OBJECTIONS BECOME INFRUCTUOUS AND ACCORDINGLY I S DISMISSED. 4. IN THE RESULT, BOTH REVENUE'S APPEAL AS WELL AS AS SESSEE'S CROSS-OBJECTIONS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH JUNE, 2016 SD/- (J. SUDHAKARA REDDY) ACCOUNTANT MEMB ER HYDERABAD, DATED 17 TH JUNE, 2016 TNMM I.T.A. NO. 463/HYD/16 C.O. NO. 27/HYD/16 M/S. NATURAL CHEMICAL PRODUCTS PVT LTD., :- 3 -: COPY TO : 1. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD. 2. M/S. NATURAL CHEMICAL PRODUCTS PVT. LTD., PLOT NO. 4 1, RAO AND RAJU COLONY, BANJARA HILLS ROAD NO. 14, HYDERABAD. 3. CIT(APPEALS)-4, HYDERABAD. 4. THE PR. CIT-4, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.