The ACIT, Panchmahal Circle, Godhra V. M/s. Setco Automotive Ltd., Panchmahal

ITA 117/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9274 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-02-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 13-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Capital asset
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 117/AHD/2014 (ASSESSMENT YEAR:2006-07) ASSISTANT COMMISSIONER OF INCOME-TAX, PANCHMAHAL CIRCLE, GODHRA APPELLANT VS. M/S. SETCO AUTOMOTIVE LTD. BARODA GODHRA HIGHWAY, KALOL-389330, PANCHMAHAL RESPONDENT PAN: AAACG7777K /BY REVENUE : SHRI K. MADHUSUDAN, SR. D.R. /BY ASSESSEE : WRITTEN SUBMISSIONS /DATE OF HEARING : 02.02.2017 /DATE OF PRONOUNCEMENT : 08.02.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2006-07 A RISES AGAINST CIT(A)-VI, BARODAS ORDER DATED 08.10.2013, IN APPE AL NO. CAB-VI/441/08- 09, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCO ME TAX ACT, 1961; IN SHORT THE ACT. 2. THE REVENUES SOLE SUBSTANTIVE GROUND SEEKS TO R ESTORE THE ASSESSING OFFICERS ACTION DISALLOWING PRODUCT DEVELOPMENT EX PENSES OF RS.90,66,512/- ITA NO. 117/AHD/2014 (ACIT VS. M/S. SETCO AUTOMOTI VE LTD.) A.Y. 2006-07 - 2 - TREATED AS CAPITAL IN NATURE AND DELETED BY THE CIT (A) BY FOLLOWING HIS ORDER FOR ASSESSMENT YEAR 2002-03, 2005-06 AND 2007-08 ON THE VERY ISSUE. A PERUSAL OF THE INSTANT CASE FILE REVEALS THAT THE A SSESSEE HAS PLACED ON RECORD THIS TRIBUNALS ORDER IN ASSESSMENT YEARS 2002-03 A ND 2007-08 IN ITA NOS. 1337/AHD/2011 DECIDED ON 19.02.2016 UPHOLDING THE L OWER APPELLATE ORDER ON IDENTICAL ISSUES AFTER HOLDING THAT THE ASSESSEE S PRODUCT DEVELOPMENT EXPENSES IN QUESTION DID NOT INCREASE ITS CAPACITY NOR DID IT SET UP A SEPARATE AND INDEPENDENT UNIT FOR MANUFACTURING THEREBY BRIN GING INTO EXISTENCE ANY CAPITAL ASSET. 3. WE AFFORDED AMPLE OPPORTUNITIES TO THE REVENUE S O AS TO REBUT THE SAID CO-ORDINATE BENCHS FINDINGS DEALING WITH THE VERY ISSUE. IT FAILS TO POINT OUT ANY DISTINCTION ON FACTS AS WELL AS THE ISSUE INVOL VE IN THESE ASSESSMENT YEARS I.E. ALREADY DECIDED AS WELL AS THE IMPUGNED ASSESS MENT YEAR. WE THUS FIND NO REASON TO ADOPT A DIFFERENT APPROACH IN THE IMPU GNED ASSESSMENT YEAR. WE ACCORDINGLY CONFIRM THE CIT(A)S ORDER UNDER CHA LLENGE. THE REVENUE FAILS IN ITS SOLE SUBSTANTIVE GROUND. 4. THIS REVENUES APPEAL IS ACCORDINGLY DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 08 TH DAY OF FEBRUARY, 2017.] SD/- SD/- ( MANISH BORAD ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 08/02/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ITA NO. 117/AHD/2014 (ACIT VS. M/S. SETCO AUTOMOTI VE LTD.) A.Y. 2006-07 - 3 - ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0