The DCIT, Anand Circle, Anand V. M/s Optics India Equipments Pvt. Ltd, Anand

ITA 1217/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7323 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 10-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule of consistency; Tax effect

Judgement Text

ITA NO. 1217/AHD /2018 DCIT VS. OPTICS INDIA EQUIPMENTS PVT LTD AY : 2014-15 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH D, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT, AND AMARJIT S INGH, ACCOUNTANT MEMBER] ITA NO. 1217/AHD/2018 ASSESSMENT YEAR: 2014-15 THE DY. COMMISSIONER OF INCOME-TAX .......... .....APPELLANT ANAND CIRCLE, ANAND VS M/S. OPTICS INDIA EQUIPMENTS PVT LTD .......... ..........RESPONDENT 2116, HARI KRUPA, NAYA PADKAR LANE, MG ROAD, ANAND 388 001 [PAN : AABCO 5728 M] APPEARANCES BY SHRI VINOD TANWANI, SR DR, FOR THE REVENUE NONE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JANUARY 29, 2020 DATE OF PRONOUNCEMENT : JANUARY 30, 2020 O R D E R PER JUSTICE P P BHATT, PRESIDENT : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 18 TH JANUARY 2018, PASSED BY THE LEARNED CIT(A)-4, VADODARA FOR THE ASSESSMENT YEAR 2014-15. 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: 1.1 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CA SE, AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION DISALLOWING D EPRECIATION ON GOODWILL WITHOUT CONSIDERING THE FACTS OF THE CASE. 1.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CAS E, AND IN LAW, THE ID. CIT(A) ERRED IN DELETING THE ADDITION DISALLOWING D EPRECIATION ON GOODWILL WITHOUT CONSIDERING THAT THE ASSESSEE HAD FAILED TO CONTROVERT THE FINDINGS OF THE AO, AND FAILED TO SUBSTANTIATE THE VALUATION OF GOODWILL CLAIMED TO HAVE ARISEN FROM THE PURCHASE OF TWO SISTER CONCERNS. ITA NO. 1217/AHD /2018 DCIT VS. OPTICS INDIA EQUIPMENTS PVT LTD AY : 2014-15 PAGE 2 OF 3 1.3 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE , AND IN LAW, THE ID. CIT(A) ERRED IN DELETING THE ADDITION DISALLOWING DEPRECIA TION ON GOODWILL WITHOUT CONSIDERING THAT THE ADDITION IS SUPPORTED BY THE D ECISION OF THE HON'BLE ITAT IN UNITED BREWERIES (TS-553-ITAT-2016(BANG.) ( ITA NO.722, 801 & 1065/BANG/2014 DATED 30.9.16. 1.4 THAT IN THE FACTS AND CIRCUMSTANCES OF THE C ASE, AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION DISALLOWING D EPRECIATION ON GOODWILL WITHOUT CONSIDERING THAT THE FACTS IN THIS CASE WER E DIFFERENT FROM THE FACTS IN SMIFS SECURITIES (348 ITR 302), AS THE ASSESSEE HAD FAILED TO SUBSTANTIATE THE VALUATION OF GOODWILL. 1.5 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE , AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION DISALLOWING DEPRECIA TION ON GOODWILL ON THE BASIS OF THE DECISION IN AY 2013-14, WITHOUT CONSID ERING THE FACTS BROUGHT ON RECORD IN THE YEAR UNDER CONSIDERATION, AND WITHOUT CONSIDERING THAT THE PRINCIPLE OF CONSISTENCY DOES NOT APPLY IN SUCH A S ITUATION, AS EXPLAINED BY THE HON'BLE HIGH COURT KRISHAK BHARATI COOPERATIVE LTD.(210 TAXMAN 123). 3. AT THE TIME OF HEARING BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE; HOWEVER, SINCE THE ISSUE IN QUESTION IS C OVERED BY CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019, THIS APPEAL IS DEC IDED EX-PARTE QUA THE ASSESSEE, AFTER HEARING THE LEARNED DEPARTMENTAL RE PRESENTATIVE AND PERUSING THE MATERIAL AVAILABLE ON RECORD. 4. HAVING HEARD THE LEARNED DEPARTMENTAL REPRESENTA TIVE AND HAVING PERUSED THE MATERIAL ON RECORD, WE FIND THAT THIS A PPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR NO . 17 OF 2019 DATED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANCED TO RS.50 LAKHS. THIS CONCESSION GRANTED BY THE CENTRAL BOARD OF DIRECT T AXES (CBDT) IS RETROSPECTIVE IN EFFECT INASMUCH AS IT APPLIES TO A LL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, THE APPEAL OF THE RE VENUE IS NO LONGER MAINTAINABLE AND IS DISMISSED AS SUCH. 5. IT IS, HOWEVER, MADE CLEAR THAT ON RE-VERIFICATI ON AT THE END OF THE ASSESSING OFFICER IF IT COMES OUT THAT THE TAX EFFE CT OF MORE THAN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WI THIN THE EXEMPTION CLAUSE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERT Y TO FILE MISCELLANEOUS ITA NO. 1217/AHD /2018 DCIT VS. OPTICS INDIA EQUIPMENTS PVT LTD AY : 2014-15 PAGE 3 OF 3 APPLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLI CATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D DUE TO LOW TAX EFFECT. PRONOUNCED IN THE OPEN COURT TODAY ON THE 30 TH JANUARY, 2020. SD/- SD/- AMARJIT SINGH JUSTICE P P BHATT (ACCOUNTANT MEMBER) (PRESIDENT) AHMEDABAD, DATED THE 30 TH DAY OF JANUARY, 2020 BT* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. D ATE OF DICTATION: ...LOW TAX EFFECT...29.01.2020.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE D ICTATING MEMBER: .. 29.01.2020....... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P. S./P.S.: .29.01.2020........ 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DI CTATING MEMBER FOR PRONOUNCEMENT:30.01.2020 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 30.01.2020.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER: ... 8. DATE OF DESPATCH OF THE ORDER: ......