ACIT, Circle - 2(2), Kolkata, Kolkata V. M/s. West Bengal State Electricity Transmission Co. Ltd., Kolkata

ITA 1261/KOL/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1188 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 08-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK
• Assessee Lawyers: N K PODDA R
• Keywords: Depreciation; Additional depreciation; Set aside
• Section: 143(3); 263

Judgement Text

ITA NO. 1261/KOL/2018 ASSESSMENT YEAR: 2008-2009 M/S. WEST BENGAL STATE ELECTRICIT Y TRANSMISSION CO. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 1261/KOL/2018 ASSESSMENT YEAR: 2008-2009 ASSISTANT COMMISSIONER OF INCOME TAX,.............. ............................ APPELLANT CIRCLE-2(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 -VS.- M/S. WEST BENGAL STATE ELECTRICITY TRANSMISSION CO. LIMITED,.......RESPONDENT BIDYUT BHAWAN, 9 TH FLOOR, SECTOR-II, BLOCK-DJ, BIDHAN NAGAR, KOLKATA-700091 [PAN: AAACW6952G] APPEARANCES BY: DR. A.K. NAYAK, CIT (D.R.), FOR THE APPELLANT SHRI N.K. PODDAR, SR. ADVOCATE, FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : NOVEMBER 27, 2019 DATE OF PRONOUNCING THE ORDER : DECEMBER 18, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT :- THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF LD. COMMISSIONER OF INCOME TAX(APPEALS)-19, KOLKATA DAT ED 15.03.2018 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DELETION BY THE LD. CIT(APPEALS) OF THE DISALLOWANCE OF RS.19,26,87,056 /- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ASSESSEES CLAIM FO R ADDITIONAL DEPRECIATION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF TRANSMISSION OF ELECTRICITY. IN THE ASSESSMENT ORIGINALLY COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 30.11.2010, THE LOSS OF THE ASSESSEE-COMPANY FOR THE YEAR UNDER CONSIDER ATION WAS DETERMINED BY THE ASSESSING OFFICER AT RS.12,95,32, 780/-. THE SAID ITA NO. 1261/KOL/2018 ASSESSMENT YEAR: 2008-2009 M/S. WEST BENGAL STATE ELECTRICIT Y TRANSMISSION CO. LIMITED 2 ASSESSMENT WAS SUBSEQUENTLY SET ASIDE BY THE CONCER NED LD. CIT VIDE AN ORDER PASSED UNDER SECTION 263 AND IN THE FRESH ASS ESSMENT MADE UNDER SECTION 143(3) READ WITH SECTION 263 VIDE AN ORDER DATED 03.03.2014, AN ADDITION, INTER ALIA WAS MADE BY THE ASSESSING OFFI CER ON ACCOUNT OF DISALLOWANCE OF ASSESSEES CLAIM FOR ADDITIONAL DEP RECIATION AMOUNTING TO RS.19,26,87,056/-. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3) READ WITH SECTION 263, AN APPEAL WAS PREFERR ED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) CHALLENGING, INTER ALIA , THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ITS CLAIM FO R ADDITIONAL DEPRECIATION. MEANWHILE, THE APPEAL AGAINST THE ORD ER PASSED BY THE LD. CIT UNDER SECTION 263 WAS ALSO FILED BY THE ASSESSE E AND WHILE DISPOSING OF THE SAME VIDE ITS ORDER DATED 21.10.2016 PASSED IN ITA NO. 1005/KOL/2013, THE TRIBUNAL SET ASIDE THE ORDER PAS SED BY THE LD. CIT UNDER SECTION 263 ON THE ISSUE OF ASSESSEES CLAIM FOR ADDITIONAL DEPRECIATION THEREBY RESTORING THE ORDER OF THE ASS ESSING OFFICER DATED 30.11.2010 PASSED UNDER SECTION 143(3), WHEREIN THE CLAIM OF THE ASSESSEE FOR ADDITIONAL DEPRECIATION WAS ALLOWED. K EEPING IN VIEW THIS DECISION RENDERED BY THE TRIBUNAL VIDE ITS ORDER DA TED 21.10.2016 (SUPRA), THE LD. CIT(APPEALS) TREATED THE ASSESSMEN T ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SE CTION 263 AS NULL AND VOID ON THIS ISSUE AND HELD THAT THE DISALLOWANCE M ADE BY THE ASSESSING OFFICER IN THE SAID ORDER ON ACCOUNT OF ASSESSEES CLAIM FOR ADDITIONAL DEPRECIATION STOOD DELETED. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE REVENUE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERV ED THAT THE ORDER ORIGINALLY PASSED BY THE ASSESSING OFFICER UNDER SE CTION 143(3) ON 30.11.2010 ALLOWING THE CLAIM OF THE ASSESSEE FOR A DDITIONAL DEPRECIATION WAS SET ASIDE BY THE CONCERNED LD. CIT VIDE AN ORDE R DATED 15.03.2013 ITA NO. 1261/KOL/2018 ASSESSMENT YEAR: 2008-2009 M/S. WEST BENGAL STATE ELECTRICIT Y TRANSMISSION CO. LIMITED 3 PASSED UNDER SECTION 263 WITH A DIRECTION TO THE AS SESSING OFFICER TO MAKE THE ASSESSMENT AFRESH ON THIS ISSUE. ACCORDING LY, IN THE FRESH ORDER PASSED UNDER SECTION 143(3) READ WITH SECTION 263 V IDE AN ORDER DATED 03.03.2014, THE CLAIM OF THE ASSESSEE FOR ADDITIONA L DEPRECIATION WAS DISALLOWED BY THE ASSESSING OFFICER. MEANWHILE, AN APPEAL WAS FILED BY THE ASSESSEE BEFORE THE TRIBUNAL AGAINST THE ORDER OF LD. CIT DATED 15.03.2013 PASSED UNDER SECTION 263 AND WHILE DISPO SING OF THE SAME VIDE ITS ORDER DATED 21.10.2016 (SUPRA), THE TRIBUN AL SET ASIDE THE ORDER PASSED BY THE LD. CIT UNDER SECTION 263 ON THE ISSU E OF THE ASSESSEES CLAIM FOR ADDITIONAL DEPRECIATION AND RESTORED THE ORDER OF THE ASSESSING OFFICER PASSED ORIGINALLY UNDER SECTION 143(3) ON 30.11.2010, WHEREBY THE CLAIM OF THE ASSESSEE FOR ADDITIONAL DEPRECIATI ON WAS ALLOWED BY THE ASSESSING OFFICER. CONSEQUENTLY THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SECTION 263 ON 03.03 .2014 ON THE ISSUE OF DISALLOWANCE OF ASSESSEES CLAIM FOR ADDITIONAL DEP RECIATION BECAME INFRUCTUOUS OR NULLITY AS RIGHTLY HELD BY THE LD. C IT(APPEALS) AND THE SAID DISALLOWANCE STOOD AUTOMATICALLY DELETED AS A RESUL T OF THE TRIBUNALS ORDER RESTORING THE ORDER ORIGINALLY FILED BY THE A SSESSING OFFICER UNDER SECTION 143(3) ON 30.11.2011, WHEREIN THE CLAIM OF THE ASSESSEE FOR ADDITIONAL DEPRECIATION WAS ALLOWED. WE, THEREFORE, FIND NO INFIRMITY IN THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND UPHOLDING THE SAME, WE DISMISS THIS APPEAL FILED BY THE REVEN UE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 18, 2019. SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT) KOLKATA, THE 18 TH DAY OF DECEMBER, 2019 COPIES TO : (1) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(2), KOLKATAP, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 ITA NO. 1261/KOL/2018 ASSESSMENT YEAR: 2008-2009 M/S. WEST BENGAL STATE ELECTRICIT Y TRANSMISSION CO. LIMITED 4 (2) M/S. WEST BENGAL STATE ELECTRICITY TRANSMISSIO N CO. LIMITED, BIDYUT BHAWAN, 9 TH FLOOR, SECTOR-II, BLOCK-DJ, BIDHAN NAGAR, KOLKATA-700091 (3) COMMISSIONER OF INCOME TAX (APPEALS)-19, KOLKA TA; (4) COMMISSIONER OF INCOME TAX, KOLKATA- , KOLKATA; (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.