DCIT Circle 1, Tuticorin V. V.O.Chidambaranar Port Trust (Formelry known as M/s. Tuticorin Port Trust), Tuticorin

ITA 1949/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9651 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 18-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Keywords: Depreciation
• Section: 37(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NOS.1948 & 1949/CHNY/2018 & C.O. NOS.117 & 118/CHNY/2018 (IN I.T.A. NOS.1948 & 1949/CHNY/2018) ( )( / ASSESSMENT YEARS : 2013-14 & 2014-15 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1, TUTICORIN, PIN : 628 001. V. M/S V.O. CHIDAMBARANAR PORT TRUST, (FORMERLY KNOWN AS M/S TUTICORIN PORT TRUST), NO.1 ADMINISTRATIVE OFFICE, HARBOUR ESTATE, TUTICORIN, PIN : 628 004. PAN : AAALT 0206 D (+,/ APPELLANT) ( RESPONDENT & CROSS-OBJECTOR) +, - . / APPELLANT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.CIT /0+, - . / RESPONDENT BY : SH. N. DEVANATHAN, ADVOCATE SH. XAVIER FERNANDO, FCA 1 - 2$ / DATE OF HEARING : 06.06.2019 34) - 2$ / DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : BOTH THE APPEALS OF THE REVENUE ARE DIRECTED AGAI NST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME T AX (APPEALS) -1, MADURAI, DATED 27.03.2018 AND PERTAIN TO ASSESSMENT 2 I.T.A. NOS.1948 & 1949/CHNY/18 C.O. NOS.117 & 118/CHNY/18 YEARS 2013-14 AND 2014-15. THE ASSESSEE HAS FILED CROSS- OBJECTIONS AGAINST THE VERY SAME ORDER OF THE CIT(A PPEALS). THEREFORE, WE HEARD BOTH THE APPEALS OF THE REVENUE AS WELL AS THE CROSS-OBJECTIONS OF THE ASSESSEE TOGETHER AND DISPO SING OF THE SAME BY THIS COMMON ORDER. 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS DETE RMINATION OF WRITTEN DOWN VALUE AS ON 31.03.2008 FOR ALLOWING DE PRECIATION. 3. HAVING HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND THE LD.COUNSEL FOR THE ASSESSEE, THIS TRIBUNAL FINDS TH AT THE CIT(APPEALS) BY PLACING RELIANCE ON THE ORDER OF TH IS TRIBUNAL FOR THE ASSESSMENT YEARS 2009-10, 2012-13 AND 2010-11 IN TH E ASSESSEE'S OWN CASE, FOUND THAT WORKING OF WRITTEN DOWN VALUE, DEPRECIATION PROVIDED IN THE BOOKS OF ACCOUNT HAS TO BE DEEMED A S DEPRECIATION ACTUALLY ALLOWED UNDER THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE TRIBUNAL BY PLACING RELIANCE ON THE JUDGMENT OF APEX COURT IN CIT V. RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION INDIA (CIVIL APPEAL NO.7186 OF 2014 DATED 13 TH DECEMBER, 2017) FOUND THAT THE ASSESSEE IS ENTITLED FOR DEPRECIATION EVEN THOUGH T HE COST OF ASSET WAS ALLOWED AS APPLICATION OF INCOME. IN FACT, THE CIT(APPEALS) HAS RELIED ON THE ORDER OF THIS TRIBUNAL. THEREFORE, T HIS TRIBUNAL DO NOT 3 I.T.A. NOS.1948 & 1949/CHNY/18 C.O. NOS.117 & 118/CHNY/18 FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 4. THE ASSESSEE HAS ALSO RAISED ONE MORE ISSUE WITH REGARD TO ALLOWABILITY OF EXPENDITURE UNDER SECTION 37(1) OF THE ACT EVEN AFTER THE EXPENDITURE WAS ALLOWED UNDER SECTION 36(1)(IV) AND (V) OF THE ACT. 5. HAVING HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND THE LD.COUNSEL FOR THE ASSESSEE, THIS TRIBUNAL FINDS TH AT THIS ISSUE WAS ALSO EXAMINED BY THIS TRIBUNAL FOR THE ASSESSMENT Y EARS 2009-10, 2012-13 AND 2010-11. AN IDENTICAL ORDER OF THE CIT (APPEALS) WAS CONFIRMED BY THIS TRIBUNAL. IN FACT, THE CIT(APPEA LS) FOLLOWED THE ORDER OF THIS TRIBUNAL. SINCE THE CIT(APPEALS) FOL LOWED ORDER OF CO- ORDINATE BENCH OF THIS TRIBUNAL, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(APPEALS) AND AC CORDINGLY, THE SAME IS CONFIRMED. 6. NOW COMING TO THE CROSS-OBJECTIONS FILED BY THE ASSESSEE, THE GROUNDS RAISED IN THE CROSS-OBJECTIONS ARE ONLY TO SUPPORT THE ORDER OF THE CIT(APPEALS). NO INDEPENDENT ISSUES A RE RAISED. THEREFORE, THE CROSS-OBJECTIONS FILED BY THE ASSESS EE BECOME INFRUCTUOUS. 4 I.T.A. NOS.1948 & 1949/CHNY/18 C.O. NOS.117 & 118/CHNY/18 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A ND THE CROSS- OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 19 TH JUNE, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 19 TH JUNE, 2019. KRI. - /278 98)2 /COPY TO: 1. +, /APPELLANT 2. /0+, /RESPONDENT 3. 1 :2 () /CIT(A)-1, MADURAI 4. PRINCIPAL CIT, MADURAI-1, MADURAI 5. 8; /2 /DR 6. <( = /GF.