Assistant Commissioner of Income Tax, Bangalore V. M/s. karnataka Industrial Area Development Board, Bangalore

ITA 1333/BANG/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4622 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 21-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VANDANA SAGAR
• Assessee Lawyers: PADAMCHAND KHINCHA
• Keywords: Depreciation
• Section: 205; 43; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO. 1333 /BANG/201 6 ASSESSMENT YEAR : 2011 12 ACIT (E) CIRCLE 1, BENGALURU. VS. M/S KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD, 143, R. P. BUILDING, 2 ND FLOOR, NRUPATUNGA ROAD, BENGALURU 560 001. PAN : A AATK1350J APPELLANT RESPONDENT ASSESSEE BY : SHRI PADAM CHAND KHINCHA, C. A. REVENUE BY : S MT. VANDANA SAGAR, CIT DR DATE OF HEARING : 1 5 .10. 20 20 DATE OF PRONOUNCEMENT : 19 . 1 0 .20 20 O R D E R PER ARUN KUMAR GARODIA, A. M.: THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST AN ORDER OF LEARNED CIT(A) 14, LTU, BENGALURU DATED 20.04.2016. 2. IN THIS APPEAL, ALTHOUGH VARIOUS GROUNDS ARE RAISED BY THE REVENUE BUT THERE ARE ONLY TWO GRIEVANCES. FIRST GRIEVANCE IS THIS THAT LEARNED CIT (A) IS NOT JUSTIFIED IN HOLDING THAT PROVISO TO SECTION 2 (15) IS NOT APPLICABLE IN THE PRESENT CASE. SECOND GRIEVANCE IS THIS THAT LEARNED CIT (A) IS NOT JUSTIFIED IN HOLDING THAT DEPRECIATION IS ALLOWABLE IN THE PRESENT CASE BY IGNORING THE JUDGMENT OF HONBLE KERALA HIGH COURT RENDERED IN THE CASE OF LISSIE MEDICAL INSTITUTION VS. CIT, 348 ITR 344 AND ITA NO. 1333 /BANG/2016 PAGE 2 OF 3 JUDGMENT OF HONBLE SUPREME COURT RENDERED IN THE CASE OF ESCORTS LTD. VS. UOI, 199 ITR 43 3. IN COURSE OF HEARING, LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER ON BOTH ISSUES AND LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF CIT (A) ON BOTH ISSUES. LEARNED AR OF THE ASSESSEE ALSO SUBMITTED THAT ON PAGES 373 TO 388 OF THE PAPER BOOK IS THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN ASSESSEES OWN CASE IN ITA NO. 205 OF 2016 DATED 30.09.2020 AND IN THIS JUDGMENT IN PARA 8 ON PAGE 385, IT IS NOTED BY HONBLE KARNATAKA HIGH COURT THAT THE TRIBUNAL HAS HELD THAT THE PROVISO TO SECTION 2 (15) IS NOT APPLICABLE IN CASE OF THIS ASSESSEE AND THEREAFTER, IN PARA 9. ON PAGE 385, IT IS NOTED BY HONBLE KARNATAKA HIGH COURT THAT THE ORDER PASSED BY THE TRIBUNAL IS BASED ON METICULOUS APPRECIATION OF MATERIALS ON RECORD AND IT IS NOT PERVERSE BY ANY STRETCH OF IMAGINATION AND CONFIRMED THE TRIBUNAL ORDER. HE SUBMITTED THAT THE FIRST ISSUE RAISED BY THE REVENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THIS JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN ASSESSEES OWN CASE. REGARDING THE SECOND ISSUE I.E. REGARDING ALLOWABILITY OF DEPRECIATION IN THE PRESENT CASE, LEARNED AR OF THE ASSESSEE PLACED RELIANCE ON THE TRIBUNAL ORDER RENDERED IN THE OWN CASE OF THE ASSESSEE FOR A. Y. 2012 13 IN ITA NO. 951/BANG/2017 DATED 03.07.2020 COPY ON PAGES345 TO 362 OF THE PAPER BOOK AND POINTED OUT THAT IN PARAS 14 TO 16 OF THIS TRIBUNAL ORDER ON PAGES 360 AND 361 OF THE PAPER BOOK, THE TRIBUNAL HAS FOLLOWED A JUDGMENT OF HONBLE SUPREME COURT RENDERED IN THE CASE OF CIT VS. RAJASTHAN AND GUJARAT CHARITABLE FOUNDATION POONA AS REPORTED IN 89 TAXMAN.COM 127 AND DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE. ITA NO. 1333 /BANG/2016 PAGE 3 OF 3 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE FIRST ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN ASSESSEES OWN CASE. SIMILARLY, SECOND ISSUE IS ALSO SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL ORDER IN ASSESSEES OWN CASE IN WHICH, THE TRIBUNAL HAS FOLLOWED A JUDGMENT OF HONBLE SUPREME COURT RENDERED IN THE CASE OF CIT VS. RAJASTHAN AND GUJARAT CHARITABLE FOUNDATION POONA (SUPRA). HENCE, WE DECLINE TO INTERFERE IN THE ORDER OF CIT (A). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- SD SD/- /- (N. V. VASUDEVAN) (A.K. GARODIA) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED: 19 TH OCTOBER, 2020. /NS/* AKG COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.