The DCIT, Circle-4, Ahmedabad V. Jay Infra Trade Pvt.Ltd., Ahmedabad

ITA 1595/AHD/2008

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 2048 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-02-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 08-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL , AM ) ITA NO.1595/AHD/2008 A. Y.: 2005-06 THE D. C. I. T., CIRCLE-4, NAVJIVAN TRUST BUILDING, OFF. ASHRAM ROAD, AHMEDABAD VS JAY INFRA TRADE PVT. LTD., PANCHVATI CIRCLE, AMBAWADI, AHMEDABAD PA NO. AAACJ 3800 C (APPELLANT) (RESPONDENT) APPELLANT BY SHRI DARSI SUMAN RATNAM, DR RESPONDENT BY WRITTEN SUBMISSION O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-VI II, AHMEDABAD DATED 28 TH FEBRUARY, 2008 FOR ASSESSMENT YEAR 2005-06 ON THE FOLLOWING GROUNDS: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACT S OF THE CASE IN NOT UPHOLDING THE STAND TAKEN BY THE A. O. THAT OUT OF THE TOTAL INCOME OF RS.77,22,786/- RECEIVED BY THE ASSESSEE ON ACCOUNT OF HOUSE KEEPING CHARGES FROM ASSOCIATE CONCERNS, ONLY A SUM OF RS.6,24,725/- NEEDED TO BE TREATED AS ASSESSEES INCOME FROM BUSINESS AND THE BALANCE NEEDED TO BE TREATED AS INCOME FROM OTHER SOURCES. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN DELETING THE DISALLOWANCE OF DEPRECIATI ON OF RS.11,89,386/- CLAIMED BY THE ASSESSEE ON ITA NO.1595/AHD/2008 DCIT, CIR4, AHMEDABAD VS JAY INFRA TRADE PVT. LTD. 2 VARIOUS BUSINESS ASSETS UTILIZED IN PROVIDING THE AFORESAID HOUSE KEEPING SOURCES. 2. THE AO OBSERVED THAT THE ASSESSEE HAS RECEIVED H OUSE KEEPING CHARGES AND SHOWN THE SAME AS BUSINESS INCO ME. THE AO FOLLOWING THE ORDER FOR ASSESSMENT YEAR 2003-04 HEL D THAT SAME WAS INCOME FROM OTHER SOURCES. DEPRECIATION WAS ALSO AC CORDINGLY DISALLOWED. THE LEARNED CIT(A) NOTED THAT THE APPEA L OF THE ASSESSEE HAS BEEN ALLOWED BY THE LEARNED CIT(A) FOR ASSESSME NT YEAR 2003-04 AND HOUSE KEEPING CHARGES WAS HELD TO BE BUSINESS I NCOME. ACCORDINGLY, THE APPEAL OF THE ASSESSEE WAS ALLOWED ON BOTH THE GROUNDS. 3. THE ASSESSEE IN THE WRITTEN SUBMISSION SUBMITTED THAT THE DEPARTMENTAL APPEAL HAS BEEN DISMISSED ON THE SAME GROUNDS BY ITAT AHMEDABAD A BENCH IN THE CASE OF THE SAME AS SESSEE IN ITA NO.216/AHD/2007 DATED 30-09-2009. COPY OF THE ORDER IS PLACED ON RECORD. THE LEARNED DR DID NOT DISPUTE THE ABOVE FA CT. 4. ON CONSIDERATION OF THE ABOVE FACTS WE ARE OF TH E VIEW NO INTERFERENCE IS CALLED FOR IN THE MATTER. THE FINDI NGS OF THE AO WERE BASED UPON THE FINDINGS GIVEN IN ASSESSMENT YEAR 20 03-04 AND THE ORDER OR THE AO HAS BEEN SET ASIDE BY THE LEARNED C IT(A). THE AO NOTED IN THE ASSESSMENT ORDER THAT SINCE APPEAL IS PENDING BEFORE THE TRIBUNAL, THEREFORE, SAME FINDINGS WERE FOLLOWE D. NOW, THE DEPARTMENTAL APPEAL IS DISMISSED BY THE TRIBUNAL IN ASSESSMENT YEAR 2003-04. THEREFORE, NOTHING LEFT FOR CONSIDERATION IN FAVOUR OF THE REVENUE. THE WHOLE BASIS OF THE AO HAS GONE FOR MAK ING THE ADDITION ITA NO.1595/AHD/2008 DCIT, CIR4, AHMEDABAD VS JAY INFRA TRADE PVT. LTD. 3 AGAINST THE ASSESSEE. THE ISSUE IS SQUARELY COVERED BY THE ORDER OF THE ITAT AHMEDABAD BENCH IN THE CASE OF THE SAME AS SESSEE FOR ASSESSMENT YEAR 2003-04 DATED 30-09-2009. ACCORDING LY, THE DEPARTMENTAL APPEAL IS DISMISSED. 5. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMI SSED. ORDER PRONOUNCED ON 18-02-2011 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 18- 02-2011 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD