IFMR HOLDINGS PRIVATE LIMITED, CHENNAI V. JCIT (OSD) CORPORATE CIRCLE 2(2), CHENNAI

ITA 1369/CHNY/2019

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9634 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 03-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 20

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , !' #, % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ ITA NO.1369/CHNY/2019 ) *) / ASSESSMENT YEAR : 2015-16 M/S IFMR HOLDINGS PVT. LTD., (SINCE DEMERGED INTO DVARA SOLUTIONS PVT. LTD.), 10 TH FLOOR, PHASE-I, IIT-MADRAS RESEARCH PARK, KANAGAM VILLAGE, TARAMANI, CHENNAI - 600 113. PAN: AAGCD 4686 E V. THE JOINT COMMISSIONER OF INCOME TAX (OSD), CORPORATE CIRCLE 2(2), NUNGAMBAKKAM, CHENNAI - 600 034. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SH. SAROJ KUMAR PARIDA, ADVOCATE ./,- 0 1 / RESPONDENT BY : MS. R. ANITHA, JCIT 2 0 '% / DATE OF HEARING : 05.11.2019 3#* 0 '% / DATE OF PRONOUNCEMENT : 20.11.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -5, CHENNA I, DATED 21.02.2019 AND PERTAINS TO ASSESSMENT YEAR 2015-16. 2 I.T.A. NO.1369/CHNY/19 2. SH. SAROJ KUMAR PARIDA, THE LD.COUNSEL FOR THE A SSESSEE, SUBMITTED THAT THE CIT(APPEALS) EXTRACTED THE GROUN DS OF APPEAL FILED BY THE ASSESSEE BEFORE HIM AND FINDINGS OF TH E ASSESSING OFFICER, IN HIS ORDER AND UPHELD THE ORDER OF THE A SSESSING OFFICER WITHOUT ANY FURTHER DISCUSSION. ACCORDING TO THE L D. COUNSEL, THE APPLICATION OF MIND TO THE MATERIAL AVAILABLE ON RE CORD IS NOT EXPLICIT IN HIS ORDER. THEREFORE, THE LD.COUNSEL SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE CIT(APPEALS) FOR RECONS IDERATION. 3. WE HEARD MS. R. ANITHA, THE LD. DEPARTMENTAL REPRESENTATIVE ALSO. AS RIGHTLY SUBMITTED BY THE L D.COUNSEL FOR THE ASSESSEE, THE CIT(APPEALS) EXTRACTED THE GROUNDS OF APPEAL FILED BY THE ASSESSEE BEFORE HIM AND THE FINDINGS OF THE ASS ESSING OFFICER IN THE ASSESSMENT ORDER AND FOUND THAT THE BUSINESS LO SS AND UNABSORBED DEPRECIATION CANNOT BE ALLOWED. 4. UNDER THE SCHEME OF THE INCOME-TAX ACT, THE CIT( APPEALS) BEING THE FIRST APPELLATE AUTHORITY, HAS ALL THE PO WERS OF THE ASSESSING OFFICER. IN OTHER WORDS, THE POWER OF TH E CIT(APPEALS) IS COTERMINOUS WITH THAT OF THE ASSESSING OFFICER. WH ATEVER THE ASSESSING OFFICER OMITTED TO DO IN THE COURSE OF AS SESSMENT PROCEEDING CAN VERY WELL BE DONE BY THE CIT(APPEALS ). THE 3 I.T.A. NO.1369/CHNY/19 CIT(APPEALS) IS EMPOWERED TO ENHANCE THE ASSESSMENT AFTER RE- APPRECIATING THE MATERIAL AVAILABLE ON RECORD. THE REFORE, IT IS OBVIOUS THAT THE CIT(APPEALS) HAS SIGNIFICANT ROLE TO PLAY IN THE ASSESSMENT PROCEEDINGS AND AS FIRST APPELLATE AUTHO RITY. 5. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT(APPEALS), BEING THE FIRST APPELLATE AUTHORITY, IS EXPECTED TO RE- APPRECIATE THE MATERIAL AVAILABLE ON RECORD IRRESPE CTIVE OF THE FACT WHETHER THE ASSESSEE APPEARED BEFORE HIM OR NOT AND RECORD HIS OWN FINDINGS IN THE CONCLUSION REACHED BY HIM. IN THIS CASE, THE CIT(APPEALS) HAS NOT APPLIED HIS MIND TO THE MATERI AL AVAILABLE ON RECORD. THE APPLICATION OF MIND DOES NOT REFLECT I N THE ORDER OF THE CIT(APPEALS). THEREFORE, THIS TRIBUNAL IS OF THE C ONSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED BY THE CIT( APPEALS). ACCORDINGLY, THE ORDER OF THE CIT(APPEALS) IS SET A SIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESSEE IS REMITTED BAC K TO HIS FILE. THE CIT(APPEALS) SHALL RE-APPRECIATE THE MATERIAL AVAIL ABLE ON RECORD AND BRING ON RECORD THE ENTIRE FACTUAL ASPECTS AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVI NG A REASONABLE OPPORTUNITY TO THE ASSESSEE. IT IS NEEDLESS TO PO INT OUT THAT THE APPLICATION OF MIND BY THE CIT(APPEALS) SHALL BE RE FLECTED IN THE 4 I.T.A. NO.1369/CHNY/19 APPELLATE ORDER. IN OTHER WORDS, THE CIT(APPEALS) SHALL PASS A SPEAKING ORDER BY RECORDING HIS OWN REASONS FOR THE CONCLUSION REACHED BY HIM. 6. WITH THE ABOVE OBSERVATION, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 20 TH NOVEMBER, 2019 AT CHENNAI. SD/- SD/- ( !' #) ( . . . ) (RAMIT KOCHAR) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 20 TH NOVEMBER, 2019. KRI. 0 .' 6 76*' /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 8' () /CIT(A)-5, CHENNAI 4. PRINCIPAL CIT-2, CHENNAI 5. 69 .' /DR 6. ) : /GF.