M/s Century Galaxy Developers Ltd., Bangalore V. DCIT, Bangalore

ITA 1306/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0377 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 31-05-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 02-11-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K R NARAYANAN JT
• Assessee Lawyers: S RAMASUBRAMANIAN
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.1306/BANG/2015 ASSESSMENT YEAR : 2011-12 M/S. CENTURY GALAXY DEVELOPERS LTD., NO.2, DIAMOND DISTRICT (HAL) AIRPORT ROAD, KODIHALLY, BENGALURU 560 017. PAN: AAACC 9836F VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 11(2), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI S. RAMASUBRAMANIAN, CA RESPONDENT BY : SHRI K.R. NARAYANAN, JT. CIT(DR) DATE OF HEARING : 31.05.2016 DATE OF PRONOUNCEMENT : 03.06.2016 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1 THAT THE ORDER OF THE LEARNED COMMISSIONER OF I NCOME TAX (APPEALS) IN SO FAR IT IS PREJUDICIAL TO THE INTERE STS OF THE APPELLANT IS BAD AND ERRONEOUS IN LAW AND AGAINST THE FACTS A ND CIRCUMSTANCES OF THE CASE. ITA NO. 1306/BANG/2015 PAGE 2 OF 4 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS) ERRED IN LAW AND ON FACTS IN HOLDING THAT THE DEPRE CIATION IS NOT ALLOWABLE ON THE BUILDING WHICH IS LEGALLY OWNED BY THE APPELLANT. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS) ERRED IN LAW AND ON FACTS IN HOLDING THAT THE APPEL LANT IS NOT THE OWNER JUST BECAUSE THE USER RIGHTS HAVE BEEN ASSIGN ED TO THE SHAREHOLDER-ALLOTTEES. 4. WITHOUT PREJUDICE TO THE GROUNDS NO. 2 & 3 ABOV E, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE ALLOWED THE DEPRECIATION ON THE COMMON AREAS WHICH ARE OWNED BY THE APPELLANT. EACH OF THE ABOVE GROUNDS IS WITHOUT PREJUDICE TO O NE ANOTHER AND THE APPELLANT CRAVES LEAVE OF THE LEARNED HONB LE INCOME TAX APPELLATE TRIBUNAL. BANGALORE TO ADD, DELETE, AMEND OR OTHERWISE MODIFY ONE OR MORE OF THE ABOVE GROUNDS E ITHER BEFORE OR AT THE TUNE OF HEARING OF THIS APPEAL. 2. THOUGH VARIOUS GROUNDS ARE RAISED IN THIS APPEAL , BUT THEY ALL RELATE TO DISALLOWANCE OF DEPRECIATION ON THE BUILDINGS. 3. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE HAS CANDIDLY ADMITTED THAT THE IMPUGNED ISSUE IS SQUARE LY COVERED AGAINST THE ASSESSEE BY THE TRIBUNALS ORDER DATED 08.10.2008 I N ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2003-04 IN ITA NO.999/BANG/ 2013. COPY OF THE ORDER IS PLACED ON RECORD. THE LD. COUNSEL FOR TH E ASSESSEE, HOWEVER, SUBMITTED THAT THE ASSESSEE HAS FILED AN APPEAL BEF ORE THE HONBLE HIGH COURT OF KARNATAKA AND THE SAME IS PENDING FOR DISP OSAL. IN LIGHT OF THE PENDENCY OF THE APPEAL BEFORE THE HONBLE HIGH COUR T, HE SUBMITTED THAT ITA NO. 1306/BANG/2015 PAGE 3 OF 4 THE APPEAL BEFORE THE TRIBUNAL BE KEPT IN ABEYANCE. THIS SUBMISSIONS OF THE ASSESSEE WAS STRONGLY OBJECTED TO BY THE REVENU E WITH THE SUBMISSION THAT UNLESS AND UNTIL THE ORDER OF THE TRIBUNAL IS REVERSED OR ITS OPERATION IS STAYED BY THE HONBLE HIGH COURT, IT HOLDS THE FIEL D AND THE TRIBUNAL IS SUPPOSED TO FOLLOW THE SAME WHILE ADJUDICATING THE SAME ISSUE. 4. HAVING HEARD THE RIVAL SUBMISSIONS IN THIS REGAR D, WE ARE OF THE VIEW THAT UNLESS AND UNTIL OPERATION OF THE ORDER OF THE TRIBUNAL IS STAYED OR IS REVERSED BY THE HONBLE HIGH COURT OF KARNATAKA, IT HOLDS THE FIELD AND THE TRIBUNAL IS SUPPOSED TO FOLLOW THE SAME. WE, THER EFORE, FOLLOWING THE ORDER OF THE TRIBUNAL FOR A.Y. 2003-04 IN ASSESSEE S OWN CASE OF WHICH COPY IS PLACED ON RECORD, DECIDE THE ISSUE AGAINST THE ASSESSEE. WE, THEREFORE, CONFIRM THE ORDER OF THE CIT(APPEALS) IN THIS REGARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. PRONOUNCED IN THE OPEN COURT ON THIS 3 RD DAY OF JUNE, 2016. SD/- SD/- ( A.K. GARODIA ) (SUNIL KUMAR YA DAV ) ACCOUNTANT MEMBER JUDIC IAL MEMBER BANGALORE, DATED, THE 3 RD JUNE, 2016. /D S/ ITA NO. 1306/BANG/2015 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENTS 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.