Farmson Fashions Pvt.Ltd., Surat V. The Dy.CIT.,Circle-1, Surat

ITA 1490/AHD/2012

• Counselvise Citation: 149020514 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-09-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 05-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: R B SHAH
• Keywords: Depreciation
• Section: 143(3); 148; 2

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ITA NO.1490/AHD/2012 / ASSESSMENT YEAR: 2005-06 M/S. FARMSONS FASHIONS PVT LTD 3003, WORLD TRADE CENTRE, RING ROAD, SURAT PAN : AAACF 3415 F VS. DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1, SURAT / (APPELLANT) / (RESPONDENT) ASSESSEE(S) BY : SHRI R.B. SHAH, AR REVENUE BY : SHRI NARENDRA SINGH, SR DR !' / DATE OF HEARING : 10 /09/2015 / DATE OF PRONOUNCEMENT: 29/09/2015 / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-I, SUR AT DATED 17.07.2012 FOR ASSESSMENT YEAR 2005-06. 2. THE FIRST GROUND OF THE ASSESSEES APPEAL REA DS AS UNDER:- 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME-TAX (AP PEALS) HAS ERRED IN CONFIRMING THE ACTION OF ASSESSING OFFICER IN REOPE NING ASSESSMENT BY ISSUING NOTICE U/S 148 OF THE I.T. ACT, 1961. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. THE ADMITTED FACTS ARE THAT ORIGINAL ASS ESSMENT WAS COMPLETED ITA NO. 1490/AHD/2012 FARMSONS FASHIONS PVT LTD VS. DCIT AY: 2005-06 2 U/S 143(3) ON 31.03.2008. NOTICE U/S 148 WAS ISSUE D ON 29.03.2011. THE RELEVANT ASSESSMENT YEAR IS AY 2005-06. THEREFORE, THE NOTICE U/S 148 WAS ISSUED AFTER MORE THAN FOUR YEARS FROM THE END OF T HE RELEVANT ASSESSMENT YEAR. AS PER PROVISO TO SECTION 147, WHERE THE ORI GINAL ASSESSMENT IS COMPLETED U/S 143(3) THE SAME CANNOT BE RE-OPENED B EYOND THE PERIOD OF FOUR YEARS UNLESS THERE IS FAILURE ON THE PART OF T HE ASSESSEE TO DISCLOSE THE FULLY AND TRULY ALL MATERIAL FACTS. IN THIS CASE, THE ASSESSING OFFICER RE- OPENED THE ASSESSMENT ON THE GROUND THAT THE DEPREC IATION WAS ALLOWED IN RESPECT OF ELECTRIC INSTALLATIONS AT THE RATE OF 25 % AS AGAINST THE CORRECT RATE OF DEPRECIATION BEING 15%. THUS, ADMITTEDLY, IT IS NO T A CASE OF FAILURE ON THE PART OF THE ASSESSEE TO DISCLOSE FULLY AND TRULY AL L MATERIAL FACTS. IN VIEW OF ABOVE, IN OUR OPINION, THE RE-OPENING OF ASSESSMENT BEYOND THE PERIOD OF FOUR YEARS, WHERE THE ORIGINAL ASSESSMENT WAS COMPL ETED U/S 143(3), WAS NOT PERMISSIBLE. ACCORDINGLY, WE QUASH THE RE-OPEN ING OF ASSESSMENT AND CONSEQUENTLY THE ASSESSMENT ORDER DATED 21.11.2011, WHICH WAS PASSED U/S 143(3) R.W.S. 147, IS ALSO QUASHED. 4. SINCE WE HAVE QUASHED THE ASSESSMENT ORDER, THE OTHER GROUND WHICH IS WITH REGARD TO DISALLOWANCE OF DEPRECIATION ON E LECTRICAL FITTINGS DOES NOT SURVIVE FOR ADJUDICATION. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 29 TH SEPTEMBER, 2015 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 29/09/2015 BIJU T., PS