Dy. Commissioner of Income Tax Circle-2(3), Hyderabad V. M/s Taher Ali Industries & Projects Private Limited, Hyderabad

ITA 1613/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82327 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 28-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAYED TAUSIF ALI
• Keywords: Depreciation; Wrong claim

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 1613/HYD/2013 ASSESSMENT YEAR : 2005-06 DY. COMMISSIONER OF INCOME- TAX, CIRCLE 2(3), HYDERABAD. M/S TAHER ALI INDUSTRIES & PROJECTS P. LTD., HYDERABAD. PAN AABCT4110E (APPELLANT) (RESPONDENT) C.O. NO. 45/HYD/14 (IN ITA NO. 1613/HYD/2013 ASSESSMENT YEAR : 2005-06) M/S TAHER ALI INDUSTRIES & PROJECTS P. LTD., HYDERABAD. PAN AABCT4110E DY. COMMISSIONER OF INCOME- TAX, CIRCLE 2(3), HYDERABAD (CROSS OBJECTOR) (RESPONDENT) REVENUE BY SHRI SOLGY JOSE T. KOTTARAM ASSESSEE BY SHRI SAYED TAUSIF ALI DATE OF HEARING 04-08-2014 DATE OF PRONOUNCEMENT 05-09-2014 O R D E R PER SAKTIJIT DEY, J.M.: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-III, HYDERABAD DATED 11/09/2013 FOR THE ASSE SSMENT YEAR 2 ITA NO. 1613/HYD/2013 & CO NO. 45/H/14 M/S TAHER ALI INDUSTRIES & PROJECTS P. LTD 2005-06. ASSESSEE ALSO FILED C.O., WHICH IS IN SUPP ORT OF THE ORDER OF CIT(A). 2. THE ONLY ISSUE IN THIS APPEAL RELATES TO THE ACT ION OF CIT(A) IN DELETING PENALTY IMPOSED U/S 271(1)(C) OF THE IT AC T AMOUNTING TO RS. 8,46,994/-. 3. BRIEFLY THE FACTS ARE. ASSESSEE IS A COMPANY DE RIVES INCOME FROM BUSINESS OF MANUFACTURE OF PIPES FOR WATER SUP PLY AND SEWERAGE SCHEMES. ASSESSEE FILED THE RETURN OF INCOME ON 30/ 05/2005 DECLARING TAXABLE INCOME OF RS. 2,29,13,640/- AFTER CLAIMING DEDUCTION OF RS. 2,23,54,350/- U/S 80IA AND DEPRECIATION ON L EASED ASSETS OF RS. 23,14,668/-. DURING THE ASSESSMENT PROCEEDINGS, IN ABSENCE OF EVIDENCE TO ESTABLISH ASSESSEES OWNERSHIP OVER THE ASSETS, AO HELD THAT ASSESSEE IS NOT ENTITLED FOR DEPRECIATION ON T HE LEASED ASSETS AND ACCORDINGLY DISALLOWED CLAIM OF DEPRECIATION. O N THE BASIS OF ADDITIONS MADE IN ASSESSMENT, AO INITIATED PROCEEDI NG OF PENALTY U/S 271(1)(C) BY ALLEGING THAT ASSESSEE HAS CONCEALED PARTICULARS OF INCOME BY MAKING WRONG CLAIM OF DEPRECIATION. THOUG H, ASSESSEE SUBMITTED ITS EXPLANATION BEFORE THE AO OBJECTING T O THE PROPOSED IMPOSITION OF PENALTY BUT THE AO REJECTING THE EXPL ANATION HELD THAT AS THE ASSESSEE HAS WILLFULLY CONCEALED PARTICULARS OF ITS INCOME, IT IS LIABLE FOR PENALTY U/S 271(1)(C). ACCORDINGLY, THE AO WORKED OUT THE PENALTY AT RS. 8,46,994/-. AGGRIEVED OF SUCH IMPOSI TION OF PENALTY, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CI T(A). 4. BEFORE THE CIT(A), IT WAS SUBMITTED PENALTY IMPO SED UNDER IDENTICAL FACTS AND CIRCUMSTANCES ON THE SAME ISSUE BY THE AO AND CONFIRMED BY THE CIT(A), IN ASSESEES OWN CASE HAS BEEN CANCELLED BY THE ITAT. CIT(A) AFTER CONSIDERING THE SUBMISSIO NS OF THE ASSESSEE, DELETED THE PENALTY IMPOSED BY THE AO U/S 271(1)(C) FOLLOWING THE DECISION OF THE COORDINATE BENCH OF I TAT IN ASSESSEES OWN CASE IN ITA NO. 129/HYD/2013. 3 ITA NO. 1613/HYD/2013 & CO NO. 45/H/14 M/S TAHER ALI INDUSTRIES & PROJECTS P. LTD 5. AGGRIEVED BY THE ORDER OF THE CIT(A), REVENUE IS IN APPEAL BEFORE US. AT THE OUTSET, LD. AR SUBMITTED, ISSUE I N DISPUTE IS SQUARELY COVERED BY THE DECISIONS OF THE ITAT IN ASSESSEES OWN CASE IN ASSESSMENT YEARS 2003-04, 2004-05 AND 2006-07. THE LD. DR WAS NOT ABLE TO CONTROVERT THIS FACT. 6. WE HAVE HEARD THE PARTIES, PERUSED THE MATERIALS ON RECORD AND HAVE GONE THROUGH THE ORDERS OF THE REVENUE AUTHORI TIES. ON PERUSAL OF RECORD, WE FIND THAT IN AY 2003-04 AND 2004-05 I DENTICAL ISSUE OF IMPOSITION OF PENALTY U/S 271(1)(C) ON ACCOUNT OF A DDITION MADE TOWARDS CLAIM OF DEPRECIATION ON LEASED ASSETS CAME UP FOR CONSIDERATION BEFORE ITAT, HYDERABAD BENCH IN ASSES SEES OWN CASE IN ITA NOS. 129 & 130/HYD/13 DATED 30/08/2013. THE COORDINATE BENCH AFTER CONSIDERING SUBMISSIONS OF THE PARTIES FOUND NO JUSTIFICATION IN IMPOSING PENALTY AND ACCORDINGLY D ELETED THE SAME. WHEN SIMILAR ISSUE OF PENALTY U/S 271(1)(C) ARISING OUT OF DISALLOWANCE OF CLAIM OF DEPRECIATION ON LEASED ASS ETS AGAIN CAME UP FOR CONSIDERATION BEFORE ITAT IN APPEAL NO. 638 & 4 60/HYD/13 PERTAINING TO AY 2006-07, COORDINATE BENCH FOLLOWIN G ITS EARLIER ORDER, REFERRED TO ABOVE, DELETED THE PENALTY. AS THE CIT( A) HAS DELETED THE PENALTY IMPOSED U/S 271(1)(C) BY FOLLOWING THE CON SISTENT VIEW OF THE ITAT, IN ASSESSEES OWN CASE, WE DO NOT FIND ANY IN FIRMITY IN THE ORDER OF THE LD. CIT(A). ACCORDINGLY, WE UPHOLD THE ORDER OF THE CIT(A) BY DISMISSING THE GROUNDS RAISED. 7. AS THE C.O. FILED BY ASSESSEE IS IN SUPPORT OF T HE ORDER OF CIT(A), WHICH WE HAVE UPHELD WHILE ADJUDICATING RE VENUES APPEAL (SUPRA), THE C.O. BECOMES INFRUCTUOUS AND THE SAME IS DISMISSED AS INFRUCTUOUS. 4 ITA NO. 1613/HYD/2013 & CO NO. 45/H/14 M/S TAHER ALI INDUSTRIES & PROJECTS P. LTD 8. IN THE RESULT, APPEAL OF THE REVENUE AND THE C.O . OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 05/09/2014. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JU DICIAL MEMBER HYDERABAD, DATED: 5 TH SEPTEMBER, 2014 KV COPY TO:- 1) DCIT, CIRCLE 2(3), 8 TH FLOOR, B BLOCK, IT TOWERS, MASAB TANK, HYDERABAD 500 004 2) M/S TAHER ALI INDUSTRIES & PROJECTS PVT. LTD., 1-11-251/4/B, 6 TH FLOOR, TIRUMALA HEIGHTS, BEHIND SHOPPERS STOP, BEG UMPET, HYDERABAD. 3) CIT(A)-III, HYDERABAD. 4) CIT-II, HYDERABAD 5)THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDER ABAD.