Edelweiss Broking Limited., Hyderabad. V. Dy. Commissioner of Income Tax, Circle-2(2)., Hyderabad

ITA 1434/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5383 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 24-03-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 11-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: Y V RAO AR SHRI SUNIL KUMAR
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1434/HYD/2017 ASSESSMENT YEAR: 2011-12 M/S.EDELWEISS BROKING LIMITED, [PAN: AABCE9421H] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI T.CHAITANYA KUMAR FOR SHRI Y.V.RAO, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 24-03-2021 DATE OF PRONOUNCEMENT : 06-05-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2011-12 ARISES FROM TH E CIT(A)-5, HYDERABADS ORDER DATED 31-05-2017 PASSED IN APPEAL NO.0620/2014-15/CIT(A)-5, IN PROCEEDINGS U/S .143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES FORMER SUBSTANTIVE GRIEVANCE CHALLE NGES CORRECTNESS OF THE CIT(A)S ACTION AFFIRMING THE ASSES SMENT FINDINGS DISALLOWING ITS 10% OF THE SALARY COSTS OF RS.16,04,08,137/- COMING TO RS.1,60,40,813/-. BOTH THE ITA NO. 1434/HYD/2017 :- 2 -: PARTIES FAILS TO DISPUTE BEFORE US THAT NEITHER THE ASSESS EE HAS BEEN ABLE TO PROVE EACH AND EVERY HEAD OF SALARY EXP ENDITURE BY FILING ALL THE DETAILS OF THE EMPLOYEES CONCERNED N OR THE LEARNED LOWER AUTHORITIES HAVE CONSIDERED THE ISSUE O F SUCH EMPLOYEES COST BEING NORMAL IN THE COURSE OF ASSESSEE S STOCK BROKING BUSINESS ON DAY-TO-DAY BASIS. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE THAT A LUMPSUM 5% DISALLOWANCE THAN 10% IN ISSUE WOULD BE JUST AND PROP ER WITH A RIDER THAT THE SAME CANNOT BE TAKEN AS A PRECEDENT IN A NY OTHER CASE. ORDERED ACCORDINGLY. THE ASSESSEE GETS PART RELIEF IN ABOVE TERMS. 3. NEXT COMES DEPRECIATION DISALLOWANCE OF UPS TO THE TU NE OF RS.8,45,158/- CLAIMED @60% AS AGAINST 15% GRANTED IN BOTH THE LOWER PROCEEDINGS. WE FIND THAT HONBLE DELHI HIGH COURTS RECENT DECISION ITA NO.1266 AND 1267/2010 IN CIT VS. BSES YAMUNA POWERS LTD., DT.31 ST AUGUST, 2010 HOLDS THAT UPS FORMS PART OF THE COMPUTER SYSTEM AND IS ELIGIB LE FOR 60% DEPRECIATION. WE ADOPT THE VERY REASONING HEREIN AS W ELL AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED DISALLOWANCE. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. 4. THIS ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWE D IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH MAY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 06-05-2021 TNMM ITA NO. 1434/HYD/2017 :- 3 -: COPY TO : 1.M/S.EDELWEISS BROKING LIMITED, EDELWEISS HOUSE, O FF CST ROAD, KALINA, SANTACRUZ (EAST), MUMBAI. 2.THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD. 3.CIT(APPEALS)-5, HYDERABAD. 4.PR.CIT-5, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.