Suryodaya Market Creators Pvt.Ltd., Baroda V. The Income tax Officer,Ward-4(3), Baroda

ITA 196/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8865 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-11-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 20-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMAL I MEHTA
• Assessee Lawyers: D K PARIKH
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 27; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 196/AHD/2014 / ASSESSMENT YEAR : 2003-04 SURYODAY MARKET CREATORS PVT LTD C-24, SAHYOG SOCIETY, GORWA REFINERY ROAD, BARODA PAN : AAECS 9182 J VS INCOME TAX OFFICER, WARD-4(3), BARODA / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI D.K. PARIKH, AR REVENUE BY : SHRI VIMAL I. MEHTA, SR. DR / DATE OF HEARING : 22/11/2016 / DATE OF PRONOUNCEMENT: 22/11/2016 / O R D E R THIS IS ASSESSEES APPEAL CHALLENGING IMPOSITION OF PENALTY OF RS.63,940/-, LEVIED BY THE ASSESSING OFFICER U/S 27 1(1)(C) OF THE ACT FOR AY 2003-04 VIDE ORDER DATED 29.03.2012. 2. LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, REF ERRED TO PAPER-BOOK PAGE 1, WHICH IS THE ORDER GIVING EFFECT TO THE CIT (A), BARODAS ORDER WHO ALLOWED THE DEPRECIATION ON THE OFFICE PREMISES AND FURNITURE & FIXTURE WHICH WAS NOT ALLOWED BY THE AO. THE ITO, WARD-4(3 ), BARODA VIDE ORDER DATED 19.05.2010 HAS PASSED AN ORDER GIVING EFFECT TO THE CIT(A)-III, BARODAS ORDER DATED 01.02.2010 IN APPEAL NO.CAB/(A )-III/73/08-09, WHEREBY THE INCOME HAS BEEN DETERMINED AT NIL. B ESIDES, UNABSORBED DEPRECIATION OF RS.81,968/- HAS BEEN ALLOWED TO BE CARRIED FORWARD. THE LD. COUNSEL FOR THE ASSESSEE THUS PLEADED THAT SINCE TH E ADDITION ITSELF STANDS DELETED AND THE TAXABLE INCOME ASSESSED AT NIL, T HE CONSEQUENTIAL PENALTY DESERVES TO BE DELETED. 3. LD. DEPARTMENTAL REPRESENTATIVE IS HEARD. 4. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. I FIND THAT THE SMC-ITA NO. 196/AHD/2014 SURYODAY MARKET CREATORS PVT LTD VS. ITO AY : 2003-04 2 ASSESSING OFFICER HAS PASSED AN ORDER DATED 19.05.2 010 GIVING EFFECT TO THE CIT(A)-III, BARODAS ORDER DATED 01.02.2010 IN APPE AL NO.CAB/(A)- III/73/08-09, WHEREBY ALLOWING DEPRECIATION ON THE OFFICE PREMISES AND FURNITURE & FIXTURE AND RESULTANTLY ASSESSED THE RE VISED INCOME AS NIL AS AGAINST THE AMOUNT OF RS.1,73,980/- EARLIER ASSESSE D BY AO U/S 144 OF THE ACT. AS THE REVISED INCOME HAS BEEN ASSESSED AT NI L, NO PENALTY CAN BE LEVIED U/S 271(1)(C) OF THE ACT ON SUCH INCOME BEIN G NIL. ACCORDINGLY, THE PENALTY LEVIED BY THE AO U/S 271(1)(C) OF RS.63,940 /- IS DELETED AND ASSESSEES APPEAL IS ALLOWED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 22 ND NOVEMBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 22/11/2016 *BIJU T., SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD