M/s. Daurala Foods & Beverages Pvt. Ltd., New Delhi V. ACIT, New Delhi

CO 94/DEL/2011

• Counselvise Citation: [2013] 122 COUNSELVISE.COM (IT) 8208 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 04-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-12-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 23-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SUDHA KUMARI
• Assessee Lawyers: SAURABH SHARMA ASSTT MANAGER
• Keywords: Depreciation
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `B : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.1107/DEL./2011 (ASSESSMENT YEAR : 2007-08) ACIT, CIRCLE 10(1), VS. DAURALA FOODS & BEVERAGES P. LTD., NEW DELHI. 6 TH FLOOR, KANCHENJUNGA BUILDING, 18, BARAKHAMBA ROAD, NEW DELHI. (PAN/GIR NO.AAACD3518P) AND C.O. NO.94/DEL./2011 (IN ITA NO.1107/DEL./2011) (ASSESSMENT YEAR : 2007-08) DAURALA FOODS & BEVERAGES P. LTD., VS. ACIT, CIRCL E 10(1), NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SAURABH SHARMA, ASSTT. MANAGER, REVENUE BY : MRS. SUDHA KUMARI, CIT(DR) ORDER PER U.B.S. BEDI, J.M. THIS APPEAL OF THE REVENUE AND CROSS OBJECTION OF T HE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-XVII, NEW DELHI DATE D 25.11.2010, RELEVANT TO ASSESSMENT YEAR 2007-08. 2. IN THE APPEAL OF THE REVENUE, CHALLENGE IS WITH REGARD TO THE DELETION OF ADDITION MADE ON ACCOUNT OF MARKETING AND TECHNICAL ASSISTAN CE BEING CAPITAL IN NATURE, WHEREAS IN THE C.O. OF THE ASSESSEE, WITHOUT PREJUDICE TO THE CLAIM THAT A SUM OF RS.2,49,90,261/- IS OF REVENUE EXPENSES, THE CIT(A) HAS ERRED IN NOT DI SPOSING OF THE ALTERNATIVE CLAIM OF THE ASSESSEE TO ALLOW DEPRECIATION ON THE AMOUNT OF MAR KETING AND TECHNICAL ASSISTANCE FEE BEING INTANGIBLE ASSET AS PER THE PROVISIONS OF SEC TION 32 OF THE I.T. ACT, 1961. 3. SINCE BOTH THE ISSUES (IN DEPARTMENTS APPEAL AN D ASSESSEES C.O.) ARE INTERLINKED THEREFORE, BEING TAKEN TOGETHER. AT THE VERY OUTSE T, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE APPEAL FILED BY THE DEPARTMENT AND C.O. FILED BY THE ASSESSEE COMPANY ARE COVERED BY THE ORDER OF THE IT AT, DELHI BENCH FOR ASSESSMENT YEARS 2002-03 & 06-07 AND BY FILING COPIES OF ITAT ORDERS FOR THESE YEARS, IT WAS I.T.A. NO.1107/DEL./2011 & C.O. NO.94/DEL../2011 (A.Y. : 2007-08) 2 PLEADED FOR DISMISSAL OF THE APPEAL OF THE REVENUE BEING A COVERED CASE AND CONSEQUENTLY C.O. OF THE ASSESSEE CAN ALSO BE DISMISSED. 4. AFTER HAVING HEARD BOTH THE SIDES AND CONSIDERIN G THE MATERIAL ON RECORD, WE FIND THAT ISSUE IN HAND IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS DECISIONS IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2002- 03 & 06-07, WHICH HAVE BEEN FOLLOWED BY CIT(A) IN ORDER TO DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. NEITHER ANY CONTRARY DECISION HAS BEEN FILED NOR ANY HIGHER COU RTS DECISION HAS BEEN PRODUCED, THEREFORE, WE SEE NO JUSTIFIABLE REASON TO INTERFER E IN THE ORDER PASSED BY THE CIT(A) WHICH IS UPHELD AND APPEAL OF THE REVENUE IS DISMIS SED. 5. SO FAR AS C.O. OF THE ASSESSEE IS CONCERNED, THA T WAS ONLY ALTERNATIVE PLEA. SINCE WE HAVE DISMISSED THE APPEAL OF THE REVENUE, THEREF ORE, C.O. BECOMES INFRUCTUOUS AND SAME IS ALSO DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 04.01.2013. SD/- SD/- (T.S. KAPOOR) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : JAN. 04, 2013 SKB COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (CONCERNED). 4. CIT(A)-XVIII, NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR, ITAT