Marwar Hotels Ltd., Ahmedabad V. The Income Tax Officer, Ward-4(4), Ahmedabad

CO 303/AHD/2014

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 3306 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-12-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 02-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V K SINGH
• Keywords: Depreciation; Audit objection; Tax effect
• Section: 143(3)

Judgement Text

ITA NO. 2953 & CO NO. 303/AHD/2014 ITO VS. MARWAR HOTELS LTD ASSESSMENT YEAR: 2006-07 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO.2953/AHD/2014 & CO NO.303/AHD/2014 ASSESSMENT YEAR: 2006-07 THE INCOME-TAX OFFICER ..................AP PELLANT WARD 4 (4), AHMEDABAD VS. MARWAR HOTELS LTD ........................RESPONDENT & AIRPORT CROSS ROAD CROSS-OBJECTOR HANSOL, AHMEDABAD-380013 [PAN : AAACM 8009 M] APPEARANCES BY: VK SINGH FOR THE APPELLANT IRA KAPOOR FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 18.12.2017 DATE OF PRONOUNCING THE ORDER : 19.12.2017 O R D E R PER PRAMOD KUMAR, AM: 1. THIS APPEAL BY THE REVENUE AND THE CROSS-OBJECTI ON THEREOF BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 05.08.2014 PAS SED BY THE LEARNED CIT(A)-VIII, AHMEDABAD IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2006- 07. 2. THE GRIEVANCES RAISED BY THE ASSESSING OFFICER A RE AS FOLLOWS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF EXCESS DEPRECIATION CLAIMED ON THE INTERIOR DECO RATION AND FALSE CEILINGS WHICH WERE IN THE NATURE OF FURNITURE AND FITTINGS. 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS TO HOLD THAT THE INTERIOR DECORATION AND FALSE CEILINGS WERE IN THE NATURE OF PLANT ELIG IBLE FOR HIGHER RATE OF DEPRECIATION. 3. SO FAR AS THE APPEAL OF THE REVENUE IS CONCERNED , AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE POINTS OUT THAT THE APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF T HE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015. S HE ALSO SUBMITS THAT IN THE PRESENT CASE THE TAX EF FECT IS RS.8,67,624/- WHICH IS BELOW THE PRESCRIBED LIMIT O F RS.10 LACS AND SHE HAS PLACED ON RECORD THE WORKING FOR THE SAME. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ITA NO. 2953 & CO NO. 303/AHD/2014 ITO VS. MARWAR HOTELS LTD ASSESSMENT YEAR: 2006-07 PAGE 2 OF 2 ADMITTED THAT THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 4. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING P ERUSED THE MATERIAL ON RECORD, WE FIND THAT PRIMA-FACIE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF CBDT CIRCULAR NO. 21/2015 IN F.NO.279/MISC. 142/200 7-ITJ (PT) DATED 10TH DECEMBER 2015, VIDE WHICH IT HAS BEEN PROVIDED THAT IF THE TAX EFFECT BY VIRTUE OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S ORDER IS BEL OW RS. 10 LACS, THEN THAT ORDER WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL IN FURT HER APPEAL. THE BOARD HAS PROVIDED EXEMPTIONS AT CLAUSE (8) OF THE INSTRUCTIO NS WHEREIN IT HAS BEEN PROVIDED THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE, IF VIRES OF ANY PROVISIONS HAS BEEN QUASHED BY IMPUGNED ORDER OR ADDITION WAS MADE ON S OME AUDIT OBJECTIONS OR THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/BANK ACCOUNTS, ETC. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXEMPTION CLA USE AND THE TAX IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APPEAL IS NOT MAINTA INABLE AND HENCE DISMISSED. 5. THE APPEAL OF THE REVENUE IS THUS DISMISSED IN LIMINE. 6. AS THE APPEAL FILED BY THE REVENUE ITSELF IS FOU ND TO BE NON-MAINTAINABLE AND AS THE CROSS-OBJECTION OF THE ASSESSEE ARISES ONLY AS A RESULT OF THIS APPEAL, THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALSO DISMI SSED AS INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL AND CROSS-OBJECTION, B OTH ARE DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 19 TH DAY OF DECEMBER, 2017. SD/- SD/- S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 19 TH DAY OF DECEMBER, 2017 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: .......COVERED BY CBDT CIRCU LAR.PREPARED ON 19.12.2017 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ... 19.12.2017........ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 19.12.2017....... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: ... 19.12.2017..... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 20.12.2017.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATUREON THE ORDER: