M/s. Shanta Sizewell Pvt.Ltd., Surat V. The ACIT.,Circle-4, Surat

CO 69/AHD/2008

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 4761 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 30 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 23-07-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-05-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 24-03-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: H P MEENA
• Assessee Lawyers: R N VEPARI

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AT SURAT CAMP BEFORE S/SHRI T.K. SHARMA, JM AND D.C.AGRAWAL, AM SHANTA SIZEWELL (P) LTD., 49/1542, OUTSIDE KAMEL DARWAJA UMARWADA TEKRA, SURAT. VS. ASSTT. CIT, CIR-4, SURAT. (APPELLANT) .. (RESPONDENT) ASSESSEE BY :- SHRI R. N. VEPARI, AR REVENUE BY:- SHRI H. P. MEENA, SR. DR O R D E R PER D. C. AGRAWAL, ACCOUNTANT MEMBER . THE ASSESSEE HAS FILED THIS CROSS OBJECTION RAISI NG FOLLOWING GROUND :- 1. THE LD. CIT(A) OUGHT TO HAVE ALSO HELD THAT WITHDRA WAL OF INVESTMENT ALLOWANCE WAS NOT JUSTIFIED WHEN THE ASS ESSEE HAD UTILIZED THE INVESTMENT ALLOWANCE RESERVE AND THAT THERE WAS NO REQUIREMENT TO PASS ENTRY OF SUCH UTILIZATION FROM INVESTMENT ALLOWANCE RESERVE. 2. IN THE APPEAL FILED BY THE REVENUE IN ITA NO.347 /AHD/2008 ASST. YEAR 2001-02 WE HAVE HELD THAT NECESSARY RECTIFICAT ION CAN BE DONE ONLY IN RESPECT OF ASST. YEAR WHEN SUCH RESERVE WAS CREA TED BY INVOKING SECTION 155(4A) READ WITH SECTION 154(7). THE CONTE NTION RAISED BY THE LD. AR IN THE C.O. IS THAT ASSESSEE HAS UTILIZED THE IN VESTMENT ALLOWANCE RESERVE AND THAT THERE IS NO REQUIREMENT TO PASS EN TRY OF SUCH UTILIZATION C.O. NO. 69/AHD/08 ARISING IN ITA NO.347/AHD/2008 ASST. YEAR :2001-02 2 FROM INVESTMENT ALLOWANCE RESERVE. SINCE INVESTMENT ALLOWANCE RESERVE IS NOT UTILIZED CAN BE TAXED IN THE YEAR WHEN SUCH RESERVE WAS CREATED THEN THE QUESTION WHETHER THERE WAS ANY UTILIZATION OR IN WHAT MANNER OR WHETHER IT WAS NECESSARY TO PASS AN ENTRY IN THE IN VESTMENT ALLOWANCE RESERVE WILL BE CONSIDERED ONLY WHEN AO RESORTS TO RECTIFICATION OF THE ASSESSMENT YEAR CONCERNED. THE ISSUE HERE IS PREMAT URE AND CANNOT BE DECIDED. ACCORDINGLY, THE C.O. IS ALSO DISMISSED. 3. IN THE RESULT, THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 23/7/2010 SD/- SD/- (T.K. SHARMA) (D.C.AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD, DATED : 23/7/2010 MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD