KEI-RSOS Mari time Ltd., Hyderabad V. DCIT, Hyderabad

ITA 1058/HYD/2007

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3300 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-04-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 07-11-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: A V RAGHURAM
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1058/HYD/07 : A SSTT. YEAR 2003-04 KEI RSOS MARITIME LTD., HYDERABAD. ( PAN - AABCK 5882 C ) V/S. DY. COMMISSIONER OF INCOME-TAX, CIRCLE 2(1), HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.V.RAGHURAM RESPONDENT BY : SMT. NIVEDITA BISWAS O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YE AR 2003-04 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX(APPEALS). 2. THE ONLY ISSUE IN THIS APPEAL IS REGARDING VAL IDITY OF THE PENALTY IMPOSED UNDER S.271(1)(C) OF THE ACT. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE PENALTY UNDER S.271(1)(C) WAS IMPOSED ON THE ASSESSEE ON THE AMO UNT OF DISALLOWANCE OF DEPRECIATION ON THE TUG BOAT MT FOUZ. HE SUBMITT ED THAT IN QUANTUM APPEAL OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR 20 03-04, THE TRIBUNAL VIDE ORDER DATED 21.8.2010 IN ITA NO.969/HYD/2007, HAS A LLOWED THE CLAIM OF THE ASSESSEE WITH REGARD TO THE DEPRECIATION ON THE AS SET AND THEREFORE, THERE REMAINED NO BASIS FOR IMPOSING PENALTY UNDER S.271( 1)(C) OF THE ACT. LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT TH E SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT THE PENALTY UNDER S.271(1)(C) OF THE ACT WAS IMPOSED ON THE DI SALLOWANCE OF DEPRECIATION ON TUG BOAT MT FOUZ. THE TRIBUNAL IN THE QUANTUM AP PEAL OF THE ASSESSEE FOR ITA NO.1058/HYD/07 KEI RSOS MARITIME LTD., HYDERABAD. 2 THE RELEVANT ASSESSMENT YEAR I.E. 2003-04, VIDE ORD ER DATED 31.8.2010 IN ITA NO.969/HYD/2007, HAS DECIDED THE ISSUE OF ALLOWABI LITY OF DEPRECIATION ON THE ASSET IN QUESTION IN FAVOUR OF THE ASSESSEE AND ACC ORDINGLY, THERE REMAINS NO BASIS FOR THE IMPOSITION OF PENALTY UNDER S.271(1)( C) OF THE ACT. WE ACCORDINGLY CANCEL THE IMPUGNED PENALTY AND THE GROUNDS OF APPE AL OF THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALL OWED . ORDER PRONOUNCED IN THE COURT ON 27.5.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 27 TH MAY, 2011 COPY FORWARDED TO: 1. KEI RSOS MARITIME LTD., 10 - 3 - 316, MASABTANK, HYDERABAD. 2. DY. COMMISSIONER OF INCOME - TAX, CIRCLE 2(1) , HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) III, HYDERABAD. 4. COMMISSIONER OF INCOME - TAX II HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.