DCIT, Hyderabad V. M/s Nyse InfrastructurePvt. Limited, Hyderabad

ITA 1343/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9843 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 22-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VASUNDHARA SINHA
• Assessee Lawyers: V SRINIVAS
• Keywords: Depreciation; Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.1343/HYD/10 : ASSTT . YEAR 2007-08 DY. COMMISSIONER OF INCOME- TAX, CIRCLE-16(1), HYDERABAD V/S. M/S. NYSE INFRASTRUCTURE PVT. LTD., HYDERABAD ( PAN AABCN 6363 M ) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. VASUNDHARA SINHA RESPONDENT BY : SHRI V.SRINIVAS O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 20 07-08 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME -TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- '1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WHE THER THE ASSESSEE IS THE OWNER OF THE ROAD BRIDGE CONSTRUCTE D FOR AND ON BEHALF OF NATIONAL HIGH WAYS AUTHORITY OF INDIA. 2. WHETHER THE ASSESSEE IS ELIGIBLE FOR DEPRECIATI ON ON THE ROAD BRIDGE CONSTRUCTED BY IT TREATING IT AS THE OWNER. 3. WHETHER THE ROAD BRIDGE CAN BE CONSIDERED AS 'BU ILDING' OR 'PLANT' AND DEPRECIATION THEREON CAN BE ALLOWED. 4. WHETHER THE ASSESSEE IS ELIGIBLE TO TEAT A SUM O F RS.14,00,37,884/- AS REVENUE EXPENDITURE IN THE ABS ENCE OF TREATMENT OF THE ROAD BRIDGE AS STOCK-IN-TRADE.' ITA NO.1343./HYD/1 0 M/S. NYSE INFRASTRUCTURE PVT. LTD., HYD 2 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS REL IED ON THE ORDER OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE A SSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE GROUNDS OF APPEAL OF THE REV ENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2006-0 7 IN ITA NO.1142/HYD/2009 DATED 5.6.2009, WHEREIN THE ISSUE OF DEPRECIATION ON ROAD BRIDGE WAS DECIDED IN FAVOUR OF THE ASSESSEE. HE SUBM ITTED THAT FACTS OF THE CASE IN THE YEAR UNDER CONSIDERATION BEFORE THE TRIBUNAL ARE IDENTICAL WITH THE FACTS OF THE CASE OF THE ASSESSEE IN EARLIER ASSESSM ENT YEAR 2006- 07. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND TH AT THE ISSUE INVOLVED IN THE GROUNDS OF APPEAL OF THE REVENUE IS W HETHER THE ASSESSEE IS ENTITLED FOR DEPRECIATION ON THE ROAD BRIDGE CONSTRUCTE D BY THE ASSESSEE FOR NATIONAL HIGHWAYS AUTHORITY OF INDIA. WE FIND THAT T HIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2006-0 7, CITED SUPRA, WHEREIN THE DECISION OF THE HYDERABAD BENCH OF T HE TRIBUNAL IN ASSESSEE'S OWN CASE FOR STILL EARLIER ASSESSMENT YEAR 2005-06 DATED 5.6.2009 IN ITA NO.301/HYD/2009 WAS FOLLOWED. WE FIND THAT TH E FACTS OF THE CASE OF THE ASSESSEE FOR THE YEAR UNDER APPEAL BEFORE US ARE IDE NTICAL WITH THE FACTS OF THE CASE OF THE ASSESSEE IN THE ASSESSMENT YEAR 2006-07. WE BEING IN AGREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2006-07, DECIDE THE ISSUE INVOLVED IN THE GROUNDS OF APPEAL OF THE REVENUE IN FAVOUR OF THE ASSESSEE AND HOLD THAT THE ASSESSEE IS ENTITLED FOR DEPRECIATION O N THE ROAD BRIDGE CONSTRUCTED BY THE ASSESSEE ON BEHALF OF NATIONAL HIGHWAYS A UTHORITY OF ITA NO.1343./HYD/1 0 M/S. NYSE INFRASTRUCTURE PVT. LTD., HYD 3 INDIA. ACCORDINGLY, ORDER OF THE CIT(A) IS CONFIRMED A ND THE GROUNDS OF APPEAL OF THE REVENUE ARE REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 11.2.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 11 TH FEBRUARY,2011 COPY FORWARDED TO: 1. M/S. NYSE INFRASTRUCTURE PVT. LTD., HYDERABAD 2. DY. COMMISSIONER OF INCOME-TAX, CIRCLE-16(1), HYD ERABAD 3. COMMISSIONER OF INCOME-TAX(APPEALS)-V HYDERABAD. 4. COMMISSIONER OF INCOME-TAX IV , HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S