The ACIT, Circle-8, Ahmedabad V. Torrent Power Ltd., Ahmedabad

ITA 1520/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9736 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-01-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 10-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: VIJAY RANJAN
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: S H RI S.S. GODARA , JUDICIAL MEMBER AND SHR I MANISH BORAD , ACCOUNTANT MEMBER THE ACIT, CIRCLE - 8, AHMEDABAD (APPELLANT) VS M/S. TORRENT POWER LTD, TORRENT HOUSE, NR. DINESH HALL, OPP. AMBAWADI, AHMEDABAD PAN: AAACT0294J (RESPONDENT) REVENUE BY : S H RI NARENDRA SINGH , SR. D . R. ASSESSEE BY: S H RI VIJAY RANJAN , A.R. DATE OF HEARING : 12 - 01 - 2 016 DATE OF PRONOUNCEMENT : 20 - 01 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S REVENUE S APPEAL FOR A.Y. 2006 - 07 , AR ISES FROM ORDER OF THE CIT(A) - XIV, AHMEDABAD DATED 20 - 04 - 2012 IN APPEAL NO. CIT(A)XIV/AC. CIR.8/22/11 - 12 , IN PROCEEDINGS UNDE R SECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1520 / A HD/20 12 A SSESSMENT YEAR 200 6 - 07 I.T.A NO. 1520 /AHD/20 12 A.Y. 2006 - 07 PAGE NO ACIT VS. M/S. TORRENT POWER LTD 2 2. THE REVENUE S SOLE SUBSTANTIVE GROUND CHALLENGES THE CIT(A) S ORDER DELETING SECTION 271(1)(C) PENALTY OF RS. 1,68,26,952/ - AS IMPOSED BY THE ASSESSING OFFICER IN ORDER DATED 30 - 03 - 2011. THE SAME RELATES TO DEPRECIATION DISALLOWANCE ON LEASE HOLD RIGHT CLAIMS OF RS. 4, 99,90,962/ - MADE IN COURSE OF FRAMING OF A REGULAR ASSESSMENT ON 30 - 12 - 2008 AND UPHELD IN COURSE OF LOWER APPELLATE ORDER DATED 19 - 02 - 2009. THE ASSESSING OFFICER HELD IN THE IMPUGNED PENALTY ORDER THAT THE ASSESSEE HAD CONCEALED AND FURNISHED INACCURAT E PARTICULARS OF INCOME LEADING TO THE ABOVE STATED DEPRECIA TION DISALLOWANCE. THE CIT(A) HAS DELETED THE IMPUGNED PENALTY BY HOLDING THAT THE ASSESSEE S DEPRECIATION CLAIM IS A HIGHLY DEBATABLE ONE NOT WARRANTING ANY IMPOSITION OF PENALTY AS PER HON BLE APEX COURT DECISION IN CIT VS. RELIANCE PETRO - PRODUCTS 322 ITR 158 (SC). THIS LEAVES THE REVENUE AGGRIEVED. 3. WE HAVE HEARD BOTH THE PARTIES. RELEVANT FACT NARRATED HEREINABOVE ARE NOT REPEATED FOR THE SAKE OF BREVITY. THE CASE RECORD CONTAINS TRIBUN AL S ORDER IN QUANTUM APPEAL ITA 1865/AHD2010 DECIDED ON 28 - 12 - 2012 REMITTING THE ISSUE OF DEPRECIATION DISALLOWANCE ITSELF BACK TO THE ASSESSING O FFICER FOR A FRESH DECISION AS PER LAW BY FOLLOWING AN EARLIER ORDER ON THE VERY ISSUE IN ASSESSMENT YEAR 200 4 - 05. NEITHER OF THE PARTY BEFORE US DISPUTES THIS FACTUAL POSITION . WE OBSERVE IN THESE PECULIAR FACT S THAT NOTHING FURTHER SURVIVE S FOR OUR ADJUDICATION IN THE INSTANT PENALTY APPEAL I.T.A NO. 1520 /AHD/20 12 A.Y. 2006 - 07 PAGE NO ACIT VS. M/S. TORRENT POWER LTD 3 SINCE QUANTUM ISSUE ITSELF STANDS REMANDED. WE REJECT THE REVENUE S SOLE SUBSTAN T I VE GROUND ACCORDINGLY WITH LIBERTY TO THE ASSESSING OFFICER TO INITIATE PENALTY PROCEEDING AFRESH AS PER LAW AFTER DECIDING THE ISSUE OF QUANTUM ADDITION ON MERITS. 4. THIS REVENUE S APPEAL IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 20 - 01 - 201 6 SD/ - SD/ - ( MANISH BORAD ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 20 /01/2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,