Asian Hotels Ltd., V. JCIT,

ITA 1909/DEL/2002

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3773 (ITAT-DELHI)
• Duration Of Justice: 8 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 02-06-2010
• Assessment Year: 1994-1995
• Appeal Filed On: 09-05-2002
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D N KAR
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI K.D. RANJAN, ACCOUNTANT MEMBER ITA NO. 1909/DEL/2002 ASSESSMENT YEAR: 1994-95 ASIAN HOTELS LTD., BHIKAJI CAMA PLACE, RING ROAD, NEW DELHI VS. J.C.I.T., SPECIAL RANGE 14, NEW DELHI APPELLANT RESPONDENT APPELLANT BY : SHRI M.P. RASTOGI , ADVOCATE RESPONDENT BY : SHRI D.N. KAR, CIT DR O R D E R PER: C.L. SETHI, J.M. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DATED 07.01.2002 PASSED BY THE LD. CIT(A) IN THE MATTER OF AN ASSESSMENT MADE U/S. 143(3)/250 OF THE INCOME TAX ACT, 1961 (THE ACT) PERTAINING TO THE A.Y. 1994-95. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AGAINST T REATING THE FOLLOWING SUMS TO BE OF CAPITAL IN NATURE AS AGAINST REVENUE CLAIMED BY THE ASSESSEE:- I. RS. 18,21,301/- (RS. 95,877/- (+) RS. 17,25,424/ -) INCURRED ON ALLEGED REPAIRING OF THE AIR-CONDITIONING SYSTEM ET C. II. RS. 1,49,68,055/- INCURRED ON ALLEGED REPAIRING OF CIVIL STRUCTURES IN CONNECTION WITH RENOVATION OF HOTEL. 3. IN THIS CASE, THE ORIGINAL ASSESSMENT WAS MADE U /S. 143(3), WHEREIN SUM OF RS. 3,48,92,801/- WAS DISALLOWED BY THE AO B Y TREATING THE EXPENSES TO BE OF CAPITAL IN NATURE. THE ASSESSEE THEN PREF ERRED AN APPEAL BEFORE THE LD. CIT(A), WHO SET ASIDE THE MATTER TO THE FILE OF THE AO TO RE-EXAMINE THE ISSUE ON REPAIRS AND MAINTENANCE EXPENSES CLAIMED B Y THE ASSESSEE. IN ITA NO. 1909/DEL/2002 PAGE 2 OF 3 PURSUANCE TO THE ORDER OF THE LD. CIT(A) TO RE-EXAM INE THE ISSUE, THE AO RE- EXAMINED THE ISSUE, AND AGAIN DISALLOWED THE EXPEND ITURE BY TREATING THE SAME TO BE OF CAPITAL IN NATURE. THE FRESH ASSESSM ENT ORDER OF THE AO IS DATED 02.01.2001. THE ASSESSEE THEN PREFERRED AN A PPEAL BEFORE THE LD. CIT(A) ON 12.02.2001, AND THE CIT(A) DECIDED THE IS SUE AGAIN VIDE IMPUGNED ORDER DATED 07.01.2002. HOWEVER, IN THE M EAN TIME, THE LD. CIT(A)S FIRST ORDER PASSED IN THE FIRST ROUND REST ORING THE MATTER TO THE FILE OF THE AO FOR HIS FRESH ADJUDICATION WAS APPEALED A GAINST BY THE REVENUE BEFORE THE TRIBUNAL. THE TRIBUNAL THEN VIDE ITS CO NSOLIDATED ORDER DATED 28.04.2006, HAS REVERSED THE ORDER OF THE CIT(A) AN D RESTORED THAT OF THE AO, AND, THUS, UPHELD THE DISALLOWANCE OF EXPENSES MADE BY THE AO. IT HAS ALSO BEEN SUBMITTED BY THE LD. COUNSEL FOR THE ASSE SSEE THAT THE ASSESSEE IS IN APPEAL BEFORE THE HONBLE HIGH COURT AGAINST THE TR IBUNALS ORDER DATED 28.04.2006. IT HAS ALSO BEEN POINTED OUT BY THE LD . COUNSEL FOR THE ASSESSEE THAT A MISCELLANEOUS APPLICATION FILED BY THE ASSES SEE AGAINST THE TRIBUNALS ORDER DATED 28.04.2006 HAS BEEN DISMISSED BY THE TR IBUNAL VIDE ORDER DATED 29.01.2010 PASSED IN M.A. NO. 329/DEL/2007 ARISING OUT OF ITA NO. 5376/DEL/1997 PERTAINING TO THE A.Y. 1994-95. SINC E THE ORIGINAL ASSESSMENT ORDER DISALLOWING THE ASSESSEES CLAIM O F EXPENSES HAS BEEN UPHELD BY THE TRIBUNAL, AND THE ORDER OF THE CIT(A) REMANDING THE MATTER TO THE AO FOR FRESH ADJUDICATION HAS BEEN SET ASIDE BY THE TRIBUNAL, THE AOS FRESH ASSESSMENT ORDER PASSED IN PURSUANCE TO THE C IT(A)S ORDER RESTORING THE MATTER BACK TO HIM FOR HIS FRESH ADJUDICATION, AND CONSEQUENTLY, THE ITA NO. 1909/DEL/2002 PAGE 3 OF 3 IMPUGNED CIT(A)S ORDER, HAS BECOME REDUNDANT. IN THE LIGHT OF THESE FACTS, IT WAS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSE E THAT THE PRESENT APPEAL ARISING FROM THE CIT(A)S ORDER DATED 07.01.2002 PA SSED IN THE MATTER OF AOS FRESH ASSESSMENT ORDER PASSED U/S. 143(3)/250 HAS BECOME REDUNDANT, AND IS, THEREFORE, TO BE DISMISSED AS INFRUCTUOUS. 4. IN THE LIGHT OF THE AFORESAID CLARIFICATION MADE BY THE LD. COUNSEL FOR THE ASSESSEE, AND HAVING REGARD TO THE FACTS OF THE PRESENT CASE, WE FIND THAT THE PRESENT APPEAL HAS BECOME INFRUCTUOUS. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED AS INFRUCTUOUS. 6. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT O N 2 ND JUNE, 2010 IMMEDIATELY AFTER THE HEARING WAS OVER. SD/- (K.D. RANJAN) ACCOUNTANT MEMBER SD/- (C.L. SETHI) JUDICIAL MEMBER DATED: 2 ND JUNE, 2010 *NITASHA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR