M/s. Punit Engineering Works, Ahmedabad V. The Income tax Officer,Ward-6(4), Ahmedabad

ITA 1887/AHD/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0369 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-09-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 28-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER. ITA. NO.1886 & 1887/AHD/2012 (ASSESSMENT YEAR:2005-06 & 2006-07) M/S. PUNIT ENGINEERING WORKS, PLOT NO.L/4128, PHASE-IV, GIDC, VATVA, AHMEDABAD 382440 APPELLANT VS. THE ITO, WARD 6(4), AHMEDABAD RESPONDENT PAN: AAFFP9495D / BY ASSESSEE : SHRI TUSHAR P. HEMANI, A.R. / BY REVENUE : SHRI PRASOON KABRA, SR.D.R. /DATE OF HEARING : 14.09.2016 /DATE OF PRONOUNCEMENT : 30.09.2016 ORDER PER S. S. GODARA, JUDICIAL MEMBER THESE TWO ASSESSEES APPEALS FOR ASSESSMENT YEARS 20 05- 06 AND 2006-07 ARISE FROM SEPARATE ORDERS OF THE CI T(A)-XI, ITA NO.1886 & 1887/AHD/2012 (PUNIT ENGINEERING WORK S VS. ITO) A.Y. 2005-06 & 2006-07 - 2 - AHMEDABAD BOTH DATED 06.07.2012, IN CASES NO.CIT(A) - XI/448/WD-6(4)/10-11 & CIT(A)-XI/446/WD-6(4)/10-11 RESPECTIVELY, IN PROCEEDINGS U/S.143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961, IN SHORT THE ACT . 2. WE COME TO ASSESSEES IDENTICAL PLEADINGS IN THE TWO APPEALS. ITS FIRST SUBSTANTIVE GROUND CHALLENGES V ALIDITY OF REOPENING IN THE TWO ASSESSMENT YEARS TAKEN RECOURS E TO BY THE ASSESSING OFFICER AND AFFIRMED IN THE LOWER APPELLA TE PROCEEDINGS. ITS LATTER SUBSTANTIVE GROUND ON MERI TS ASSAILS CORRECTNESS OF THE LOWER APPELLATE ORDER CONFIRMING DISALLOWANCE OF DEPRECIATION OF RS.2,16,400/- ON IN TANGIBLE ASSETS AFTER HOLDING THAT DEPRECIATION IS NOT ALLOW ABLE ON GOODWILL. 3. LD. COUNSEL REPRESENTING ASSESSEE AT THE OUTSET FILES BEFORE US A COPY OF THIS TRIBUNALS ORDER IN ITA NO.492/AHD/2011 FOR ASSESSMENT YEAR 2007-08 DATED 27.06.2014 IN ITS OWN CASE HOLDING THAT HONBLE SUP REME COURT IN CIT VS. SMIFS SECURITIES LTD. (2012) 348 ITR 302 (SC) HAS ALREADY ACCEPTED SIMILAR DEPRECIATION CLAIM ON GOOD WILL. THE ASSESSEE SUBMITS THAT THE ISSUE SQUARELY COVERED IN ITS FAVOUR AS PER THIS TRIBUNALS EARLIER ORDER. LD. DEPARTME NTAL REPRESENTATIVE FAILS TO REBUT THIS FACTUAL POSITION . WE ACCORDINGLY ACCEPT ASSESSEES LATTER SUBSTANTIVE GR OUND ON THE ISSUE OF DEPRECIATION ON GOODWILL. THE ASSESSING O FFICER IS ITA NO.1886 & 1887/AHD/2012 (PUNIT ENGINEERING WORK S VS. ITO) A.Y. 2005-06 & 2006-07 - 3 - DIRECTED TO FINALIZE CONSEQUENTIAL COMPUTATION. TH E ASSESSEES FORMER GROUND (SUPRA) IS NOT PRESSED IN THE COURSE OF HEARING. 4. THESE TWO ASSESSEES APPEALS ARE ALLOWED ON MERI TS. [PRONOUNCED IN THE OPEN COURT ON THIS THE 30 TH DAY OF SEPTEMBER, 2016.] SD/- SD/- (MANISH BORAD) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 30/09/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + ,--. . /0 / DR, ITAT, AHMEDABAD 1 + 23 / GUARD FILE. BY ORDER / . // . /0