Srinidhi Textiles, Erode V. ACIT, Erode

ITA 1764/CHNY/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8177 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 27-12-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 16-09-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MILIND MADHUKAR BHUSARI
• Keywords: Depreciation; Principle of natural justice; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI . . . , ! ' .. # $!% , ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER ! ./ ITA NO.1764/MDS/2013 * +* /ASSESSMENT YEAR: 2007-08 M/S.SRINIDHI TEXTILES, NO.18, THIRUNAGAR COLONY, ERODE 638 003. VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-I, ERODE. [PAN: AAO FS 9972 P ] ( ,- /APPELLANT) ( ./,- /RESPONDENT) ,- 0 1 / APPELLANT BY : MR.S. SRIDHAR, ADV. ./,- 0 1 /RESPONDENT BY : MR.MILIND MADHUKAR BHUSARI, CIT(DR) # 0 2' /DATE OF HEARING : 27.12.2016 34+ 0 2' /DATE OF PRONOUNCEMENT : 13.01.2017 / O R D E R PER D.S.SUNDER SINGH , ACCOUNTANT MEMBER : 1.0 THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 21.08.2013 OF COMMISSIONER OF INCOME TAX (APPEALS)- I, COIMBATORE, IN ITA NO.139/12-13 FOR THE AY 2008-09. ITA NO.1764/MDS/2016 :- 2 -: 2.0 THE ASSESSE FILED APPEAL ON THE FOLLOWIN G GROUNDS: 1. THE ORDER OF THE HONOURABLE COMMISSIONER OF INCO ME TAX (APPEAL)-I, IS OPPOSED TO LAW, FACTS OF THE CASE AND AGAINST EQUITY AND PRINCIPLES OF NATURAL JUSTICE. 2. A) HONOURABLE COMMISSIONER OF INCOME TAX (APPEAL)-I, E RRED IN NOT DISPOSING ANY OF THE GROUND OF APPEAL RAISED BY THE APPELLANT. B) HONOURABLE COMMISSIONER OF INCOME TAX (APPEAL)-I, E RRED IN UPHOLDING THE ACTION OF THE LEARNED ASSESSING OFFICER WITHOUT DECIDING T HE APPEAL ON THE MERITS OF THE CASE. IN VIEW OF THE ABOVE GROUNDS AND SUCH OTHER ADDITI ONAL GROUNDS WHICH MAY BE ADDUCED AT THE TIME OF HEARING WITH THE LEAVE OF TH E HONOURABLE INCOME TAX APPELLATE TRIBUNAL, THE APPELLANT PRAYS BEFORE THE HONOURABLE INCOME TAX APPELLATE TRIBUNAL. A) TO SET ASIDE THE ORDER OF THE HONOURABLE COMMISSION ER OF INCOME TAX (APPEALS) AND THE LEARNED ASSESSING OFFICER. B) TO ACCEPT THE INCOME RETURNED BY THE ASSESSEE. C) TO PASS SUCH OTHER CONSEQUENTIAL ORDER AS THE HONOU RABLE INCOME TAX APPELLATE TRIBUNAL MAY DEEM FIT TO RENDER JUSTICE. 3.0 THE ASSESSMENT IN THIS WAS COMPLETED U/S.143(3) ON 31.12.2009 ON TOTAL INCOME OF RS.9,96,128/-. SUBSEQUENTLY, THE C IT TAKEN UP THE CASE FOR REVISION U/S.263 AND PASSED REVISION ORDER ON 3 1.12.2012 DIRECTING THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS AO) TO DISALLOW THE DEPRECIATION ON BUILDING AND MACHINERY WHICH WAS TR ANSFERRED BY BOOK ENTRY DATED 15.03.2007 FOR A BOOK VALUE OF RS.3,51, 95,332/-. CONSEQUENT TO THE REVISION ORDER U/S.263, THE AO PASSED THE CO NSEQUENTIAL ORDER DISALLOWING THE DEPRECIATION ON BUILDING AMOUNTING TO RS.1,75,97,666/-. THE ASSESSE FILED AN APPEAL BEFORE THE LD.CIT(A) AN D THE LD.CIT(A) CONFIRMED THE ORDER OF THE AO. THEREFORE, THE ASSE SSEE IS IN APPEAL BEFORE US. 4.0 WE HEARD THE BOTH PARTIES AND PERUSED THE MATER IAL PLACED BEFORE US. THE IMPUGNED ORDER OF THE A.O WAS PASSED GIVING EFFECT TO THE ORDER OF THE CIT U/S.263 IN C.NO.220(12)/REV.263/CIT-II/C BE/2011-12 DATED ITA NO.1764/MDS/2016 :- 3 -: 30/03/2012. THE ASSESSEE FILED APPEAL IN THIS TRIB UNAL CHALLENGING THE SAID ORDER U/S.263 AND WE HAVE REMITTED THE MATTER BACK TO THE FILE OF THE AO TO DECIDE THE ISSUE OF ALLOWABILITY OF DEPRECIAT ION INDEPENDENTLY APART FROM RELYING ON THE MORTGAGE DEED ENTERED BETWEEN M /S.SRINIDHI FABRICS PVT. LTD. AND THE TIIC. WE HAVE DIRECTED THE AO TO RE-DO THE ASSESSMENT AFTER EXAMINING THE FACTS OF THE CASE REGARDING THE TRANSFER OF THE ASSETS OF THE SHAREHOLDER COMPANY TO THE ASSESSE. SINCE, WE HAVE ALREADY SET ASIDE THE ORDER U/S.263 AND MODIFIED THE DIRECTIONS OF LD.CIT, THE APPEAL BECOMES INFRUCTUOUS AND STANDS REMITTED TO THE AO. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH JANUARY, 2017, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ' . . # $!% ) (D.S.SUNDER SINGH) ' /ACCOUNTANT MEMBER /CHENNAI, 5! /DATED: 13 TH JANUARY, 2017. TLN 0 .2$6 76+2 /COPY TO: 1. ,- /APPELLANT 4. # 82 /CIT 2. ./,- /RESPONDENT 5. 6 9 .2 /DR 3. # 82 ( ) /CIT(A) 6. * < /GF