ITO, Ward - 15(3), Kolkata, Kolkata V. M/s. Indian Jute Machinery Research & Development, Kolkata

ITA 1136/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5961 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 18-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: SIKHA AGARWAL ACA
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI, M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 1136 / KOL / 20 17 ASSESSMENT YEAR :2013-14 INCOME TAX OFFICER, WARD-15(3), AAYAKAR BHAWAN, POORVA, 110, SHANTI PALLI, KOLKATA- 107 V/S . M/S INDIAN JUTE MACHINERY RESEARCH &DEVELOPMENT,14 DR. MOHD. ISHAQUE ROAD, KOLKAATA-16 [ PAN NO.AABCI 9607 D ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI S. DASGUPTA, ADDL. CIT-DR /BY RESPONDENT SMT. SIKHA AGARWAL, ACA /DATE OF HEARING 23-07-2018 /DATE OF PRONOUNCEMENT 31-07-2018 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2013-14 A RISES FROM COMMISSIONER OF INCOME TAX (APPEALS)-5, KOLKATAS ORDER DATED 31.03 .2017 PASSED IN CASE NO.524/CIT(A)-5/WD-15(3)/150-16 REVERSING ASSESSING OFFICERS ACTION DISALLOWING ASSESSEES DEPRECIATION CLAIM OF 2,06,05,390/-, IN ASSESSMENT ORDER DATED 04.03.2016 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE REVENUES SOLE SUBSTANTIVE GRIEVANCE PLEADED IN THE INSTANT APPEAL IS THAT CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN DELETING THE IMPUGNED DEPRECIATION DISALLOWANCE OF 2,06,05,390/-. LEARNED ADDL. CIT-DR INVITES OUR ATT ENTION TO CIT(A)S ORDER DELETING THE IMPUGNED ADDITION AS FO LLOWS :- I HAVE PERUSED THE ASSESSMENT ORDER AND THE SUBMISS ION OF THE A/R. THE REASON GIVEN BY THE AO FOR DISALLOWANCE OF DEPRECIATION IS THAT THE CLAIM OF DEPRECIATION THIS YEAR HAS ITS BASE IN THE PREVIOUS YEAR RELEVANT TO AY 2012-13 BEING PRIOR TO THE CURRENT. AY 2013-14. THERE IS NO OTHER REASON BY TH E AO FOR THE SAID DISALLOWANCE ITA NO.1136/KOL/2017 A.Y. 2013-14 ITO WD-15(3), KOL. VS. M/S INDIAN JUT E MACHINERY RESEARCH & DEVELOPMENT PAGE 2 HAS HOWEVER GIVEN SOME DETAILS OF WIP CAPITALIZED L AST YEAR AND THE DISALLOWANCE OF DEPRECIATION LAST YEAR ON THE GROUND THAT THE ASSET WAS NOT PUT TO USE. IN MY VIEW, THAT HAPPENED LAST YEAR IS NOT RELEVANT AT ALL. THE CLAIM OF DEPRECIATION THIS YEAR HAS SOLELY TO DEPEND ON WHETHER THE ASSET WAS PUT TO USE IN THE CURRENT YEAR OR NOT. AS THE ASSESSEE HAS CLAIMED DEPRECIATION, PRESUMPTION IS THAT THE ASSET WAS PUT TO USE. THIS PRESUMPTION HAS NOT BEEN EVEN QUESTIONED BY TH E AO, WHO HAS MADE AN IRRELEVANT OBSERVATION OF WIP IN THE LAST YEAR. I D O NOT SEE ANY BASIS FOR THE AO'S ORDER ON THE POINT. THIS DISALLOWANCE FOR DEPRECIAT ION IS ARBITRARY. THE GROUND IS ALLOWED. IT IS SUFFICIENTLY CLEAR FROM THE CIT(A)S ABOVE EX TRACTED DISCUSSION THAT MAIN ISSUE HEREIN IS THAT OF RELEVANT ASSETS HAVING BEEN PUT TO USE OR NOT. WE SOUGHT TO KNOW FROM BOTH THE LEARNED REPRESENTATIVES AS TO WHETHER THE VERY ISSUE HAS ARISEN IN EARLIER ASSESSMENT YEAR OR NOT. WE ARE INFORMED THA T INSTANT TAXPAYERS APPEAL FOR SAID PRECEDING ASSESSMENT YEAR RAISING THE VERY ISS UE IS PENDING BEFORE THE CIT(A)- 3 KOLKATA FOR HEARING ON 23.10.2018. LEARNED COUNSE L REPRESENTING THE ASSESSEE FAILS TO DISPUTE THAT THE VERY ISSUE QUA THE INSTANT DEPRECIATION CLAIM INVOLVING SAME ASSETS DO HAVE RAMIFICATIONS IN THE IMPUGNED ASSESS MENT YEAR AS WELL. WE THEREFORE RESTORE THE INSTANT LIS BACK TO THE CIT(A) FOR A CO MBINED DISPOSAL OF THE INSTANT DEPRECIATION ISSUE AS WELL AS THAT IN THE PROCEEDIN G ASSESSMENT YEAR. LEARNED DEPARTMENTAL REPRESENTATIVE SHALL ENSURE THAT ASSES SEES BOTH APPEAL IN THESE TWO ASSESSMENT YEARS ARE CLUBBED TOGETHER AT THE CIT(A) LEVEL IN THE MEANTIME AS PER RULES. THE REVENUE SUCCEEDS IN ITS SOLE SUBSTANTIVE GROUND FOR STATISTICAL PURPOSES. 3. THIS REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT 31/ 07/2018 SD/- SD/- ( %) (' %) (M.BALAGANESH) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 31 / 07 /201 8 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ITO WARD-15(3), AAYAKAR BHAWAN, POORVA, 110, SHANTI PALLI, KOL-107 2. /RESPONDENT-M/S INDIAN JUTE MACHINERY RESEARCH & DEV ELOPMENT, 14 DR. MOHD. SHAQUE RD. KOL-16 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5. 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO 3,