Bhaurao Chavan Sahakari Sakhar Karkhana Ltd., Nanded V. CIT (A)-II, Aurangabad, Aurangabad

ITA 1331/PUN/2006

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49874 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-06-2011
• Assessment Year: 1998-1999
• Appeal Filed On: 08-12-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJITKUMAR SRIVASTAVA
• Keywords: Depreciation; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D. KARUNAKARA RAO (AM) ITA NO. 1331, 1332 & 1333/PN/2006 (ASSTT. YEAR :1998-99 TO2000-01) BHAURAO CHAVAN SAHAKARI SAKHAR KARKHANA LIMITED ... APPELLANT AT. LAXMINAGAR, DEGAON YELEGAON, TQ & DIST. NANDED PAN : NOT AVAILABLE V. ASSTT CIT , CIR 3 NANDED IV /CIT(A) - II,AURANGABAD RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI AJITKUMAR SRIVASTAVA ORDER PER I.C. SUDHIR, JM ITA NO. 1331 AND 1332/PN/2006 IN THESE APPEALS PREFERRED BY THE ASSESSEE, FOLLOW ING GROUNDS (RECONSTITUTED) HAVE BEEN RAISED : 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) ERRED IN ENHANCING THE INCOME OF THE APPELLANT BY D ISALLOWING CORRECTLY COMPUTED DEPRECIATION BY THE ASSESSING OF FICER IN 154 PROCEEDINGS. 2. THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE ASSESSING OFFICER HAD ERRED IN ALLOWING WRONG AMOUNT OF DEPR ECIATION IN ASSESSMENT PROCEEDINGS BY IGNORING THE PARTICULARS FILED BY THE APPELLANT IN ASSESSMENT PROCEEDINGS OF THE CORRECT DEPRECIATION WHICH WAS ALLOWABLE AS PER PROVISIONS OF LAW AND RE CTIFICATION OF THIS MISTAKE DID CONSTITUTED A MISTAKE APPARENT FROM REC ORDS 2. AT THE OUTSET OF HEARING, THE LD. A.R POINTED OU T THAT IN THE MEANWHILE, THE PUNE BENCH OF THE TRIBUNAL IN THE CA SE OF ASSESSEE ITSELF, IN ITA NOS. 177 AND 178/PN/2007 VIDE ORDER DATED 16 TH DECEMBER 2010 HAS SET ASIDE THE ISSUE REGARDING CLAIM OF DEPRECIA TION AT RS. ITA . NO 1331 TO 1333/PN/2006 BHAURAO CHAVAN SSK LIMITED , A.Y 1998-99 TO 2000-01 PAGE OF 4 2 7,68,79,865/- IN A.Y. 1998-99 AND RS. 3,73,89,503/- IN A.Y. 1999-2000 TO THE FILE OF THE LD CIT(A) WITH DIRECTION TO TAKE INTO CONSIDERATION THE DETAILS FURNISHED BY THE ASSESSEE AND DECIDE THE IS SUE AFRESH AFTER AFFORDING ADEQUATE OPPORTUNITY OF HEARING TO THE AS SESSEE. 3. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW AS WELL AS ABOVE CITED ORDER OF THE TRIBUNAL, WE FIND THAT DUR ING THE A.Y. 1998-99, THE A.O IN THE ORIGINAL ASSESSMENT DATED 20.3.2006 HAD ALLOWED DEPRECIATION OF RS.4,07,06736/- AS AGAINST RS.7,86, 79,865/- CLAIMED BY THE ASSESSEE. LIKEWISE, IN THE A.Y. 1999-2000, THE A.O. IN THE ORIGINAL ASSESSMENT DATED 21.3.2006 HAD ALLOWED DEPRECIATIO N AT RS.3,73,89,503/- AS AGAINST THE CLAIMED DEPRECIATIO N OF RS. 6,29,10,140/-. THE MATTER ULTIMATELY TRAVELLED BEF ORE THE TRIBUNAL VIDE APPEALS PREFERRED BY THE ASSESSEE I.E. ITA NO. 177 AND 178/PN/2009 WHEREIN VIDE ORDER DATED 16 DECEMBER 2010, THE TR IBUNAL HAS SET ASIDE THE ISSUE FOR FRESH CONSIDERATION BY THE LD CIT(A) AFTER TAKING INTO CONSIDERATION THE DETAILS FURNISHED BY THE ASSESSE E AND AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . IT APPEARS FROM THE FIRST APPELLATE ORDER IN QUESTION THAT THE ASSE SSEE HAD ALSO PREFERRED APPLICATION U/S. 154 OF THE ACT WITH DOCUMENTS IN S UPPORT TO ALLOW THE CLAIMED DEPRECIATION IN FULL BY WAY OF RECTIFICATIO N. THE A.O DID NOT ACCEPT FULL CLAIM AGAINST WHICH ASSESSEE PREFERRED FIRST APPEAL BUT COULD NOT SUCCEED. AGAINST THAT FIRST APPELLATE ORDER, P RESENT APPEALS HAVE BEEN PREFERRED. THE ASSESSEE HAD PREFERRED FIRST AP PEALS BEFORE THE LD CIT(A) THAT VIDE ORDER DT. 11.5.2006 PASSED BY T HE A.O U/S. 154, THE A.O HAS ALLOWED THE DEPRECIATION TO THE EXTENT OF R S.7,68,79,865/- AS AGAINST R.4,06,94,785/- ALLOWED BY THE A.O. IN THE ORIGINAL ORDER FOR THE A.Y. 1998-99 AND LIKEWISE VIDE ORDER DATED 12.5.200 6 U/S. 154 OF THE ACT, THE A.O HAS ALLOWED DEPRECIATION TO THE EXTENT OF RS.6,29,10,140/- ITA . NO 1331 TO 1333/PN/2006 BHAURAO CHAVAN SSK LIMITED , A.Y 1998-99 TO 2000-01 PAGE OF 4 3 AS AGAINST RS.3,23,89,503/- ALLOWED IN THE ORIGINAL ORDER IN THE A.Y. 1999-2000. 4. THE LD CIT(A) HAS REJECTED THE APPEALS PREFERRED BY THE ASSESSEE ON THE BASIS THAT THE ALLOWANCE OF EXCESS DEPRECIATION MADE BY A.O. DOES NOT COME WITHIN THE PURVIEW OF THE MISTAKE APPARENT FROM THE RECORD. IN OTHER WORDS, THE RELIEF GRANTED BY THE A.O IN ITS O RDER U/S. 154 HAS BEEN WITHDRAWN BY THE LD CIT(A). THE A.O HAD RECTIFIE D ITS ORIGINAL ORDER ON THE ISSUE ON THE BASIS THAT SOME DOCUMENTS WERE PRO DUCED BY THE ASSESSEE AT A LATER DATE. SINCE THE TRIBUNAL IN T HE MEANWHILE IN ITA NOS 177 AND 178/PN/2007 (SUPRA) HAS SET ASIDE THE ISSUE TO THE FILE OF THE LD CIT(A) WITH DIRECTION TO HIM TO DECIDE THE ISSUE AF RESH AFTER TAKING INTO CONSIDERATION THE DETAILS FURNISHED BY THE ASSESS EE AND AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE , WE FIND THAT PRESENT APPEALS HAVE BECOME INFRUCTUOUS AS BOTH THE PARTIE S NOW WILL GET SUFFICIENT OPPORTUNITY BEFORE THE LD CIT(A) TO REP RESENT ITS CASE ON THE BASIS OF DOCUMENTS ALREADY AVAILABLE ON RECORD. TH E GROUNDS AS WELL AS APPEAL ARE DISMISSED AS SUCH. ITA NO. 1333/PN/2006 5. DURING THE COURSE OF HEARING, THE LD. A.R. MOVED AN APPLICATION FILED BY THE ASSESSEE PRAYING THEREON FOR WITHDRAWA L OF THE APPEAL, TO WHICH, THE LD. D.R DID NOT HAVE OBJECTION. THE APP EAL IS ACCORDINGLY DISMISSED AS WITHDRAWN. 5. CONSEQUENTLY, ALL THE APPEALS ARE DISMISSED. ITA . NO 1331 TO 1333/PN/2006 BHAURAO CHAVAN SSK LIMITED , A.Y 1998-99 TO 2000-01 PAGE OF 4 4 THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30TH J UNE 2011. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE, DATED THE 30TH JUNE, 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-, AURANGABAD 4. THE CIT(A)- II, AURANGABAD 5. THE D.R. A BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE