ACIT, Patiala V. M/s Punjab Tractors Limited, Mohali

ITA 1214/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2436 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-03-2013
• Assessment Year: 1999-2000
• Appeal Filed On: 20-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Keywords: Depreciation
• Section: 5(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 1214 & 1215/CHD/2012 A.Y. : 1999-2000 & 2006-07 THE ACIT, CIRCLE, V M/S PUNJAB TRACTORS LTD., PATIALA INDUSTRIAL. AREA, PHASE-IV, SAS NAGAR, MOHALI. PAN: AAACP-8578K (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI N.K.SAINI ASSESSEE BY : SHRI SUMEET KHURANA DATE OF HEARING : 26.06.2013 DATE OF PRONOUNCEMENT : 27.6.2013 ORDER PER T.R.SOOD, AM BOTH THE APPEALS BY THE REVENUE ARE AGAINST THE O RDER OF THE CIT(APPEALS) PATIALA DATED 14.09.2012. 2. IN THESE APPEALS THE REVENUE HAS RAISED THE FOLL OWING GROUNDS OF APPEAL : ITA 1214/CHD/2012 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS.3,01,540/- IMPOSED U/S 271(L)(C) OF THE INCOME TAX ACT, EVEN THOUGH THE LD. CIT(A) HAD CONFIRMED THE A DDITION TO THE EXTENT OF RS.8,61,543/- ON ACCOUNT OF DEDUCTION CLAIMED U/S 8 0IA, BY ALLOCATION OF EXPENSES ON THE BASIS OF TURNOVER AS AGAINST THE RATIO OF 70 :30 APPLIED BY THE ASSESSEE, AND ON WHICH AMOUNT THE PENALTY HAS BEEN LEVIED BY THE AO. 2. IT IS PRAYED THAT THE ORDER OF LD. CLT(A) BE SET AS IDE AND THAT OF THE ASSESSING OFFICER RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROU NDS OF APPEAL BEFORE 2 THE APPEAL IS HEARD AND FINALLY DISPOSED OF. GROUND NO.1 3. AFTER HEARING BOTH PARTIES, WE FIND THAT THE ISS UE REGARDING ALLOCATION OF EXPENSES FOR THE PURPOSE OF DEDUCTION U/S 80IA WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE CIT(APPEALS) AND T HE REVENUES APPEAL WAS DISMISSED BY TRIBUNAL IN ITA NO. 269/CHD/2006. SINCE, ADDITION ON QUANTUM SIDE ITSELF STANDS DELETED BY THE TRIBUNAL, THEREFORE PENALTY PROCEEDINGS WILL NOT SURVIVE. ACCORDINGLY, WE CONF IRM THE ORDER OF LD. CIT(APPEALS). 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ITA 1215/CHD/2012 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN DELETING THE PENALTY IMPOSED U/S 271(L)(C) OF THE I.T.ACT IN RESPECT OF THE ADDITION OF RS. 1,89,27,512/- MADE BY THE AO ON ACCOUNT OF DISALLOW ANCE OF CLAIM OF ACCELERATED DEPRECIATION WITHOUT APPRECIATING THE FACT THAT THE DEPARTMENT HAD NOT ACCEPTED THE QUANTUM ORDER DATED 10.04.2012 PASSED BY THE HON'BL E ITAT IN ITA NO. 102/CHD/20IO ON THE ISSUE OF DISALLOWANCE OF HIGHER CLAIM OF DEPRECIATION AND HAD ALREADY FILED FURTHER APPEAL WITH THE HONBLE JURIS DICTIONAL HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ON THE PLEA THAT THE ASSESSEE FAILED TO JUSTIFY ITS CLAIM FOR HIGHER RATE OF DEPRECIATION EVEN ON INELIGIBLE ARTI CLES/THINGS AGAINST THE SPIRIT OF RULE 5(2) OF THE INCOME TAX RULES. 1962. 2. IT IS PRAYED THAT THE ORDER OF LD. C!T(A) BE SE T ASIDE AND THAT OF THE AO RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND FINALLY DISPOSED OF. GROUND NO. 1 4. AFTER HEARING BOTH THE PARTIES, WE FIND THAT ISSUE REGARDING ACCELERATED DEPRECIATION WAS DECIDED IN FAVOUR OF T HE ASSESSEE BY THE TRIBUNAL IN ITA NO. 102/CHD/2010 VIDE PARA 23 TO 25 . ONCE ISSUE ON MERIT 3 ITSELF HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE, THEN THERE CANNOT BE ANY PENALTY. ACCORDINGLY, PENALTY HAS BEEN RIGHTLY DELETED BY THE LD. CIT(APPEALS) AND WE CONFIRM HIS ORDER. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSE D. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVE NUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JUNE, 2013. SD/- SD/- (SUSHMA CHOWLA) (T .R.SOOD) JUDICIAL MEMBER ACCOUN TANT MEMBER DATED: 27 TH JUNE, 2013. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR ITAT,CHD.