DCIT, Circle - 10(1), Kolkata , Kolkata V. M/s. Apsahara Estates Ltd., , Kolkata

ITA 1589/KOL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2465 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 24-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURAV KUMAR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.1589/KOL/2018 ASSESSMENT YEAR:2013-14 DCIT, CIRCLE-10(1), P-7, CHOWRINGHEE SQUARE, 3 RD FLOOR, KOLKATA-69 / V/S . M/S APSAHARA ESTATES LTD. BLOCK NO. DB-80, SALT LAKE, KOLKATA-64 [ PAN NO.AAECA 3751 D ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SAURAV KUMAR, ADDL. CIT-DR /BY RESPONDENT NONE /DATE OF HEARING 06-11-2018 /DATE OF PRONOUNCEMENT 14-11-2018 /O R D E R THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2013-14, ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-4, KOLKATAS O RDER DATED 27.04.2018 PASSED IN CASE NO. 195/CIT(A)-4/2016-17 INVOLVING PROCEED INGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHES T. I THUS PROCEED EX PARTE AGAINST ASSESSEE IN THE INSTANT CASE. 2. THE REVENUES INSTANT APPEAL SUFFERS ONE DAY DEL AY IN FILING. IT IS CONDONED AS PER ASSESSING OFFICERS CONDONATION PETITION STATIN G REASONS THEREOF. THIS REVENUES APPEAL IS ACCORDINGLY TAKEN UP FOR ADJUDICATION ON MERITS. 3. THE REVENUES FORMER SUBSTANTIVE GROUND SEEKS TO REVERSE CIT(A)S FINDINGS ALLOWING DEPRECIATION OF 1,58,956/- CLAIMED ON BUILDING. LEARNED DEPARTMENTA L REPRESENTATIVE FAILS TO REBUT THE CIT(A)S CLINCHIN G FINDING OF THE FACT THAT ASSESSEE ITA NO.1589/KOL/2018 A.Y. 2013-14 DCIT, CIR-10(1), KOL. VS. M/S APSAHARA ESTATES LTD. PAGE 2 HAD NOWHERE CLAIMED SUCH AN AMOUNT AS EXPENDITURE. I THEREFORE DECLINE THE REVENUES INSTANT FORMER SUBSTANTIVE GROUND. 4. NEXT COMES THE LATTER ISSUE OF DISALLOWANCE OF I NTEREST EXPENDITURE OF 1,19,67,007/-. THE REVENUES CASE IS THAT THE ASSES SEE HAD BEEN LENDING MONEY AT HIGHER RATE OF 13-14% AS AGAINST BORROWING RATES OF 12.75% FROM RELATED PARTIES ETC., I FIND AT PAGE 6 PARA 5.3 OF CIT(A)S ORDER UNDER CHA LLENGE THAT HE HAS DIRECTED THE ASSESSING OFFICER TO VERIFY THE RELEVANT CHART SUBM ITTED DURING THE COURSE OF LOWER APPELLATE PROCEEDINGS PRIMA FACIE INDICATING HIGHER RATE OF INTEREST CHARGED THAN THAT PAID ON BORROWINGS. I FIND NO PREJUDICE HAS BEEN CA USED TO THE REVENUE SINCE THE ISSUE IN QUESTION IS VERY MUCH ALIVE BEFORE THE ASSESSING OFFICER FOR CONSEQUENTIAL ADJUDICATION. THE REVENUES INSTANT LATTER GROUND A LSO FAILS IN THESE FACTS AND CIRCUMSTANCES. 5. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 14/11/2018 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 14/11/2018 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CIR-10(1), P-7, CHOWRINGHEE SQ. 3 RD FL, KOLKATA-69 2. /RESPONDENT-M/S APSAHARA ESTATES LTD., BLOCK NO.DB- 80, SALT LAKE KOL-64 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ',