Asst.C.I.T., Hubli V. M/s Bellad & Co., Hubli

ITA 1412/BANG/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9340 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 26-09-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2015
• Court: TRIBUNAL
• Department Lawyers: MEERA SRIVASTAVA ADDITIONAL
• Assessee Lawyers: C R NULVI
• Keywords: Depreciation; Principle of natural justice
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1412/BANG/2015 ASSESSMENT YEARS : 2009-10 THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), HUBBALLI. VS. M/S. BELLAD & CO, VIDYANAGAR, HUBBALLI 580021 PAN: AABFB6457D APPELLANT RESPONDENT ASSESSEE BY : SHRI. C. R. NULVI, CA REVENUE BY : SMT. MEERA SRIVASTAVA, ADDITIONAL CIT DATE OF HEARING : 26.09.2016 DATE OF PRONOUNCEMENT : 13.10.2016 O R D E R PER A.K. GARODIA, ACCOUNTANT MEMBER THIS IS A REVENUES APPEAL DIRECTED AGAINST THE O RDER OF LEARNED CIT (APPEALS), HUBALLI DATED 15.9.2015 FOR ASSESSMENT Y EAR 2009-10. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER:- 1. THE ORDER OF THE ASSESSING OFFICER IS OPPOSED TO LAW AND FACTS. 2. THE A.O. IS NOT JUSTIFIED IN DISALLOWING RS.34,3 2,127/- CLAIMED AS DEDUCTION U/S 801A BY HOLDING THAT PROFIT OF NEW UN DERTAKING TO BE COMPUTED AS IF IT IS THE ONLY BUSINESS RIGHT FROM I TS INCEPTION AND SET OFF EARLIER YEARS LOSS AND DEPRECIATION AGAINST CURREN T YEARS INCOME OF SUCH ELIGIBLE UNIT EVEN THOUGH THEY HAVE BEEN ALLOW ED SET OFF AGAINST OTHER INCOME IN EARLIER YEARS. 3. FOR THESE AND OTHER GROUNDS OF APPEAL THAT MAY B E URGED AT THE TIME OF HEARING, THE ADDITIONS/DISALLOWANCES MENTIONED ABOV E BE DELETED IN THE INTEREST OF NATURAL JUSTICE. ITA NOS.1412/BANG/2015 PAGE 2 OF 2 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY LEARNED AR OF THE ASSESSEE THAT IT IS NOTED BY LEARNED CIT (A) IN LAST PARA OF HIS ORDER THAT ORDER PASSED BY LEARNED CIT U/S 263 HAD BEEN QUASHED BY THE TRIBUNAL AND THEREF ORE, THE ORDER PASSED BY THE AO U/S 143(3) R.W.S 263 HAS BECOME INFRUCTOUS. LEARNE D DR OF THE REVENUE COULD NOT CONTROVERT THIS FINDINGS OF LEARNED CIT (A). 4. CONSIDERING THE FACTS NOTED ABOVE, WE FIND NO RE ASON TO INTERFERE IN THE ORDER OF LEARNED CIT (APPEALS) BECAUSE THE ORDER PASSED B Y THE LEARNED CIT U/S 263 ITSELF HAS BEEN QUASHED BY THE TRIBUNAL AND THEREFORE, THE ORDER PASSED BY THE AO U/S 143(3) R.W.S. 263 DOES NOT SURVIVE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 13 TH DAY OF OCTOBER, 2016. SD/- SD/- (ASHA VIJAYARAGHAVAN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUN TANT MEMBER BANGALORE, DATED, THE 13 TH OCTOBER, 2016. /NS/ COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.