M/s. Global Vectra Helicorp Ltd., New Delhi V. CIT-IV, New Delhi

ITA 1908/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0162 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-03-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 28-04-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MONA MOHANTY
• Keywords: Revision of order; Opportunity of being heard; Revenue expenditure; Set aside
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, NEW DELHI, BENCH NEW DELHI, BENCH NEW DELHI, BENCH NEW DELHI, BENCH C CC C BEFORE SHRI C. L. SETHI, JUDICIAL MEMBER AND SHRI K. D. RANJAN, ACCOUTANT MEMBER ITA NO. 1908/DEL/2010 (ASSESSMENT YEAR 2005-06 ) M/S. GLOBAL VICTRA HELICORP LTD., VS. CIT(A) IV, C/O NANGIA & CO., NEW DELHI SUITE 4A, PLAZA M-6, JASOLA, NEW DELHI 110 025 (APPELLANTS) (RESPONDENTS) PAN / GIR NO. AADCA9315F APPELLANT BY: SHRI AMIT ARORA, CA RESPONDENT BY: SMT. MONA MOHANTY, SR. DR ORDER ORDER ORDER ORDER PER K. D. RANJAN, AM: PER K. D. RANJAN, AM: PER K. D. RANJAN, AM: PER K. D. RANJAN, AM: 1. THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT Y EAR 2005-06 IS DIRECTED AGAINST THE ORDER PASSED BY CIT U/S 263 OF THE ACT. 2. AT THE OUTSET LD. A.R. FOR THE ASSESSEE SUBMITTE D THAT IN PURSUANCE TO ORDER PASSED U/S 263 BY CIT, THE ASSES SING OFFICER HAD PASSED ASSESSMENT ORDER ON 30.12.2010 ACCEPTING THE CONTENTION OF THE ASSESSEE AND NO ADDITION HAS BEEN MADE FOR WHIC H THE EARLIER ASSESSMENT ORDER WAS SET ASIDE BY CIT U/S 263 OF TH E ACT. ON THE OTHER HAND, LD. SR. DR SUPPORTED THE ORDER OF CIT. 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. ORIGINAL ASSESSMENT WAS MADE BY THE ASSESSING OFFICER ON 20.12.2007 U/S 143(3) OF THE A CT. WHILE COMPLETING ASSESSMENT, THE ASSESSING OFFICER HAD AL LOWED THE EXPENDITURE OF ` 5,19,77,888/- INCURRED ON REPAIR & MAINTENANCE/COST OF REPLACEMENT FOR LEASED HELICOPT ERS. LD. CIT I.T.A.NO. 1908/DEL/2010 2 DELHI SET ASIDE THE ASSESSMENT ORDER U/S 263 WITH T HE DIRECTION TO RECONSIDER THE ISSUE AFRESH AFTER AFFORDING THE ASS ESSEE REASONABLE OPPORTUNITY OF BEING HEARD. 4. THE ASSESSING OFFICER EXAMINED THE CLAIM OF THE ASSESSEE IN RESPECT OF REPAIR & MAINTENANCE EXPENDITURE OF ` 5, 19,77,888/-. HE NOTED THAT THE PLANT & MACHINERY TO BE REPAIRED IN THE CASE OF THE ASSESSEE WERE HELICOPTERS WHICH WERE VERY COSTLY MA CHINES AND SPARE PARTS REQUIRED FOR THE SAME WERE ALSO COSTLY. BESIDES THE EXPENDITURE WAS OF REGULAR AND INTERMITTENT NATURE HENCE, AS IN THE EARLIER ASSESSMENT YEARS, THE SAME CAN BE ALLOWED A S REVENUE EXPENDITURE. HE ACCEPTED THE CONTENTION OF THE ASS ESSEE AND ALLOWED THE ENTIRE EXPENDITURE AS REVENUE EXPENDITU RE. 5. SINCE THE ASSESSING OFFICER HAS ACCEPTED THE CON TENTION OF THE ASSESSEE THAT THE EXPENDITURE OF ` 5,19,77,888/- WA S REVENUE IN NATURE, THE ORDER PASSED BY CIT U/S 263 BECOMES INF RUCTUOUS AND THEREFORE, THE APPEAL FILED BY THE ASSESSEE IS DISM ISSED AS SUCH. 6. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS DIS MISSED. 7. PRONOUNCED IN THE OPEN COURT ON THE CLOSE OF HEA RING ON 23 RD MARCH 2011. SD./- SD/- (C. L. SETHI) (K. D. RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23 RD MAR., 2011 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI