The Dy. Commissioner of Income Tax, Gandhinagar Circle, Gandhinagar V. M/s. Sardar Sarovar Narmada Nigam Ltd., Gandhinagar

ITA 1707/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2190 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 10-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A KHAN
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RIFAUR REHMAN, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.1707/AHD/2017 (ASSESSMENT YEAR : 2014-15) DY. CIT, GANDHINAGAR CIRCLE, GANDHINAGAR. VS. M/S. SARDAR SAROVAR NARMADA NIGAM LTD., 7 TH FLOOR, BLOCK NO.12, NEW SACHIVALAYA COMPLEX, GANDHINAGAR 382 010. [ PAN NO. AACCS 6704 L ] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI M. S. A. KHAN, CIT-D.R. RESPONDENT BY : SMT. ARTI N. SHAH, A.R. DATE OF HEARING 24.06.2019 DATE OF PRONOUNCEMENT 26.06.2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL FILED BY THE REVENUE IS DIRECTE D AGAINST THE ORDER DATED 13.04.2017 PASSED BY THE COMMISSIONER OF INCO ME TAX (APPEALS) GANDHINAGAR, AHMEDABAD ARISING OUT OF THE ORDER DAT ED 29.12.2016 PASSED BY THE DY. COMMISSIONER OF INCOME TAX, GANDHINAGAR CIR CLE, GANDHINAGAR UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED AS TO THE ACT) FOR ASSESSMENT YEAR 2014-15 WITH THE FOLLOWIN G GROUNDS: 1. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS I N APPLYING THE COST SHARING FORMULA FOR DETERMINING THE COST OF ASSERT OWNED BY THE ASSESSEE FOR THE PURPOSE OF DEPRECIATION. ITA NO.1707/AHD/2017 DCIT VS. SARDAR SAROVAR NARMADA NIGAM LTD. ASSESSMENT YEAR 2014-15 - 2 - 2. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALLOWING COMMON EXPENDITURE IN FULL INCLUDED IN PENDING CAPITALIZAT ION. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEAR NED CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO. 2. AT THE TIME OF HEARING OF THE MATTER, THE LEARNE D COUNSEL APPEARING FOR THE ASSESSEE FAIRLY SUBMITTED BEFORE US THAT THE IS SUES AS RAISED BY THE REVENUE ARE SQUARELY COVERED IN ASSESSEES OWN CASE IN EARL IER ASSESSMENT YEARS BY THE ORDER PASSED BY THIS LEARNED TRIBUNAL. COPIES WHERE OF WERE ALSO HANDED OVER TO US. THE LEARNED DR WITH ALL HIS FAIRNESS NOT OBJ ECTED THE SUBMISSION MADE BY THE LEARNED AR. 3. WE HAVE HEARD THE RESPECTIVE PARTIES, PERUSED TH E RELEVANT MATERIALS AVAILABLE ON RECORD INCLUDING THE ORDER PASSED BY T HE HONBLE ITAT IN ITA NO.3281/AHD/2016 FOR A.Y. 2013-14, WHICH HAS ALSO F OLLOWED THE ORDER PASSED EARLIER IN ITA NO.1803/AHD/2016 FOR A.Y. 201 2-13. RELEVANT PORTION WHEREOF IS AS FOLLOWS: 8. WE HAVE HEARD THE BOTH THE SIDES AND PERUSED T HE MATERIAL ON RECORD CAREFULLY AND NOTICED THAT IDENTICAL ISSUES OF BOTH THE GROUNDS OF APPEAL HAVE BEEN DECIDED BY THE CO-ORDINATE BENCH OF THE ITAT I N FAVOR OF THE ASSESSEE VIDE ITA NO. 1803/AHD/2016 ASSESSMENT YEAR 2012-13 IN THE CASE OF ASSESSEE ITSELF. THE RELEVANT PART OF THE DECISION IS REPROD UCED AS UNDER:- 4. WE HAVE CAREFULLY CONSIDERED THE ORDER OF THE L D. CIT(A). WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. THESE TWO ISSUES HAVE BEEN CONSIDERED BY THE CO-ORDINATE BENC HES OF THIS TRIBUNAL IN ASSESSEES OWN CASE FILED BY THE REVENU E IN ITA NO.944/AHD/2011 FOR A.Y. 2007-08 VIDE ORDER DATED 0 5.09.2014, ITA NO.420 & CO NO.80/AHD/2012 FOR A.Y. 2008-09 VIDE OR DER DATED 29.04.2016, ITA NOS.717 & 911/AHD/2014 FOR A.Y. 200 9-10 VIDE ORDER DATED 21.12.2016 & ITA NO.265/AHD/2015 FOR I.T.A NO . 3281/AHD/2016 A.Y. 2013-14 PAGE NO DCIT VS. M/S. SA RDAR SAROVAR NARMADA NIGAM LTD. 6 A.Y. 2011-12 VIDE ORDER DATED 15.09.2017 AND DECIDED IN FAVOUR OF THE ASSESSEE AND AGAINST THE R EVENUE. ITA NO.1707/AHD/2017 DCIT VS. SARDAR SAROVAR NARMADA NIGAM LTD. ASSESSMENT YEAR 2014-15 - 3 - 9. REGARDING COMMON EXPENDITURE INCLUDED IN INCIDEN TAL EXPENDITURE, THE CO- ORDINATE BENCH OF THE ITAT VIDE ITA NO. 265/AHD/201 5 DATED 11TH SEP, 2017 HAS DECIDED THE IDENTICAL ISSUE IN FAVOUR OF THE AS SESSEE. RELEVANT PART OF THE DECISION OF THE CO-ORDINATE BENCH IS REPRODUCED AS UNDER:- 5. WE HAVE CAREFULLY CONSIDERED THE ORDER OF THE L D. CIT(A). WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. THE HON BLE HIGH COURT OF GUJARAT IN ASSESSEES OWN CASE IN TAX APPEAL NO. 44 9 OF 2004 WITH 477 OF 2004 WITH 479 OF 2004 TO 488 OF 2004 HAD THE OCCASION TO CONSIDER SIMILAR ISSUES AND HAS DECIDED THE ISSUES IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. THIS HAS BEEN FOL LOWED BY THE CO- ORDINATE BENCH IN ITA NO. 717 AND 911/AHD/2014. RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDIN ATE BENCH OF THE ITAT AS SUPRA, WE DO NOT FIND ANY ERROR IN THE DECISION OF THE LD. CIT(A), THEREFORE, THIS GROUND APPEAL OF THE REVENUE IS ALSO DISMISSED . 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. IN THAT VIEW OF THE MATTER, RESPECTFULLY RELYING UP ON THE JUDGMENT PASSED BY THE CO-ORDINATE BENCH ON THE IDENTICAL IS SUE IN ASSESSEES OWN CASE WE FIND NO JUSTIFICATION IN INTERFERING IN THE ORDE R PASSED BY THE LEARNED CIT(A). HENCE, REVENUES APPEAL IS FOUND TO BE DEVO ID OF MERIT AND THUS DISMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 26/06/2019 SD/- SD /- ( RIFAUR REHMAN ) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 26/06/2019 ITA NO.1707/AHD/2017 DCIT VS. SARDAR SAROVAR NARMADA NIGAM LTD. ASSESSMENT YEAR 2014-15 - 4 - PRITI YADAV, SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-GANDHINAGAR, AHMEDABAD. 5. , , / DR, ITAT, AHMEDABAD 6. !' #$ / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT.REGISTRAR) , !' / ITAT, AHMEDABAD 1. DATE OF DICTATION 24.06.2019 (DICTATION PAGES 2) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 25.06.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 25.06.2019 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER