M/s Parikh Fabrics Pvt. Ltd., Hyderabad V. ITO, Hyderabad

ITA 1249/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9912 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 27-09-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MADHUVANI
• Assessee Lawyers: K A SAI PRASAD
• 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.1249/HYD/10 : ASSESSMENT YEAR 2007- 08 M/S. PARIKH FABRICS PVT. LTD., HYDERABAD. ( PAN AACCP 5359 E) V/S. INCOME-TAX OFFICER, WARD-16 (2), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.A.SAI PRASAD RESPONDENT BY : SMT. MADHUVANI O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS IS A STAY GRANTED MATTER. THIS APPEAL BY THE ASSE SSEE, FOR THE ASSESSMENT YEAR 2007-08, IS DIRECTED AGAINST THE O RDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS). 2. GROUND OF APPEAL NO.1 OF THE ASSESSEE IS AS UNDER- '1. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS ) IS NOT JUSTIFIED IN CONFIRMING THE DISALLOWANCE OF THE APPELLANT'S CLAIM OF DEDUCTION U/S. 10B. ' THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOT PRESSED THIS G ROUND OF APPEAL. THIS GROUND IS ACCORDINGLY REJECTED. 3. GROUND OF APPEAL NO.2 OF THE ASSESSEE IS AS UNDER- ITA NO.1249/HYD/10 M/S. PARIKH FABRICS PVT. LTD., HYDERABAD. 2 '2. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS ) IS NOT JUSTIFIED IN NOT DIRECTING THE LEARNED ASSESSI NG OFFICER TO ALLOW DEPRECIATION AS PER THE I.T. ACT, ON THE GROUND THAT THE STATEMENTS SUBMITTED BEFORE HIM ARE NOT AUTHENTICATED. ' 4. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) SHOULD HAVE DIRECTED THE ASSESSING OFFICER TO ALLOW DEPRECI ATION AS PER THE PROVISIONS OF THE INCOME-TAX ACT AND THE ASSESSEE HAS TA KEN A SPECIFIC GROUND OF APPEAL, BEING GROUND NO.4 TO THIS EF FECT BEFORE THE CIT(A). HE SUBMITTED THAT ALLOWANCE OF DEPRECIATION UND ER THE INCOME- TAX ACT IS MANDATORY. THE LEARNED DEPARTMENTAL REPRESE NTATIVE HAS RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT (A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT IN THE FACTS OF THE CASE AND IN VIEW OF THE FACT THAT THE ASSESSEE HAS RAISED A SPECIFIC GROUND, BEING GROUND OF APPEAL NO.4 BEFORE TH E CIT(A) FOR THE ALLOWANCE OF DEPRECIATION AS PER THE PROVISIONS OF INCOME TAX ACT, THE CIT(A) SHOULD HAVE ALLOWED THE ASSESSEE OPPORTUNITY TO FILE NECESSARY CLAIM AND PARTICULARS REGARDING ITS CLAIM FOR DEPRECATI ON BEFORE THE ASSESSING OFFICER. WE FIND THAT THE CIT(A) HAS DECIDED T HE ISSUES AGAINST THE ASSESSEE ON THE GROUND THAT THE ASSESSEE HAS NOT PROVI DED WITH ALL THE DETAILS FROM WHICH DEPRECIATION COULD BE CALCULATED B Y THE ASSESSING OFFICER, AND NO EVIDENCE TO SUBSTANTIATE ANY OF THE FA CTS HAS BEEN PROVIDED BEFORE HIM OR THE ASSESSING OFFICER. IN THESE F ACTS OF THE CASE, WE CONSIDER IT JUSTIFIED TO SET ASIDE THE ISSUE OF DEPRECI ATION AS PER THE PROVISIONS OF INCOME-TAX ACT TO THE FILE OF THE ASSESSING O FFICER, WITH A DIRECTION TO DECIDE THE SAME IN ACCORDANCE WITH LAW AFT ER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, AND T HE ASSESSEE IS ITA NO.1249/HYD/10 M/S. PARIKH FABRICS PVT. LTD., HYDERABAD. 3 DIRECTED TO FILE ALL THE RELEVANT DETAILS AND EVIDEN CE TO SUBSTANTIATE ITS CLAIM BEFORE THE ASSESSING OFFICER. WE DIRECT ACCORDINGLY . 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 13.1.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 13 TH JANUARY, 2011 COPY FORWARDED TO: 1. M/S. PARIKH FABRICS PVT. LTD., C/O. CH. PARTHASARA THY & CO., 1-1-2-9//B/3, 1ST FLOOR, SOWBHAGYA AVENUE, STREET NO .1, ASHOKNAGAR, HYDERABAD-20 2. INCOME-TAX OFFICER, WARD-16(2), HYDERABAD 3. COMMISSIONER OF INCOME-TAX(APPEALS) V, HYDERABAD . 4. COMMISSIONER OF INCOME-TAX IV, HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S .