DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(1), AHMEDABAD, AHMEDABAD V. YANFENG INDIA AUTOMOTIVE INTERIOR SYSTEMS PVT LTD, AHMEDABAD

ITA 917/AHD/2023

AI Insights

The case involves the Revenue's appeal against the order of the Commissioner of Income Tax (Appeals), which had deleted disallowances made by the Assessing Officer on account of depreciation on goodwill and advances written off, for the Assessment Year 2017-18. The assessee, Yanfeng India Automotive Interior Systems Pvt. Ltd., opted for the DTVSV Scheme, 2024, to settle the dispute, which included a determination of payable and refundable amounts under the scheme. The Departmental Representative did not object to the withdrawal of the appeal, leading to the dismissal of the appeal by the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472276 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P. SRIVASTAVA
• Assessee Lawyers: PARIMALSINH B. PARMAR
• Keywords: Depreciation; Tax effect
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “ए“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ A ” BENCH, AHMEDABAD \u0016ी संजय गग\u001b, \u0011ाियक सद एवं \u0016ी मकरंद वसंत महादेवकर, लेखा सद क े सम!। ] ] BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.917/Ahd/2023 िनधा \u000fरण वष\u000f /Assessment Year : 2017-18 Dy.Commissioner of Income Tax, Circle-4(1)(1) Ahmedabad बनाम/ v/s. Yanfeng India Automotive Interior Systems Pvt.Ltd. Plot No.AV21, GIDC Sandnad-II, Village Bol, Sanand Ahmedabad – 382 110 \u0013थायी लेखा सं./PAN: AAACY 5078 P (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Parimalsinh B. Parmar, AR Revenue by : Shri B.P. Srivastava, Sr.DR सुनवाई की तारीख/Date of Hearing : 24 /03/2025 घोषणा की तारीख /Date of Pronouncement: 24 /03/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 21.09.2023 for the Assessment Year (AY) 2017-18. The Revenue has challenged the deletion of the disallowance of Rs.1,79,79,218/- on account of depreciation on goodwill and Rs.19,75,701/- on account of advances written off, as made by the ITA No.917/Ahd/2023 Dy.CIT vs. Yanfeng India Automotive Interior Systems Pvt.Ltd. Asst. Year : 2017-18 2 Assessing Officer in the assessment order passed under Section 143(3) of the Income Tax Act, 1961. 2. During the course of hearing, the Authorized Representative of the assessee submitted an application seeking withdrawal of the appeal, stating that the assessee has opted for settlement of the dispute under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. In support of the said contention, a copy of Form No. 2 was placed on record, which shows that the amount payable under the Scheme has been determined at Rs.34,52,999/-. 2.1. It was further submitted that the tax effect involved in the present appeal, as per Form No. 36, is Rs.65,54,960/- and, therefore, the amount payable under the Scheme exceeds 50% of the disputed tax liability. It was also pointed out that after adjusting the amount payable under the Scheme, a sum of Rs.84,49,235/- is determined as refundable to the assessee, as reflected in Form No. 2 filed under the DTVSV Scheme. 3. The Departmental Representative fairly submitted that he has no objection to the withdrawal of the appeal in view of the assessee having settled the dispute under the DTVSV Scheme, 2024. 4. Having regard to the facts placed on record, particularly the declaration filed by the assessee under the DTVSV Scheme, 2024, and the computation of the amount payable under Form No. 2, which is more than 50% of the disputed tax as reflected in Form No. 36 and further taking note of the fact that the balance amount of Rs.84,49,235/- has been determined as ITA No.917/Ahd/2023 Dy.CIT vs. Yanfeng India Automotive Interior Systems Pvt.Ltd. Asst. Year : 2017-18 3 refundable to the assessee, we are of the view that the present appeal has become infructuous and is rendered academic in nature. 5. Accordingly, the appeal filed by the Revenue is dismissed. Order pronounced in the Open Court on 24th March, 2025 at Ahmedabad. Sd/- Sd/- ( SANJAY GARG ) JUDICIAL MEMBER ( MAKARAND V. MAHADEOKAR ) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 24/03/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \"ितिलिप अ#ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. \"%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT 4. आयकर आयु& ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय \"ितिनिध , अिधकरण अपीलीय आयकर , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स%ािपत \"ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 24.3.2025 2. Date on which the typed draft is placed before the Dictating Member. : 24.3.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 24.3.25 7. Date on which the file goes to the Bench Clerk. : 24.3.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "