M/s. Mavin Texturisers Pvt.Ltd., Surat V. The Dy.CIT.,Circle-1, Surat

ITA 1964/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89360 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 23-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 08-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: MEHUL R SHAH
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHRI SHAILENDRA KR. YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER MAVIN TEXTURISE R S PVT LTD 2 ND FLOOR, CORPORATE BUILDING, BOMBAY MARKET, SURAT. PAN: AACCM4411G (APPELLANT) VS DY COMMISSION ER OF INCOME TAX, CIRCLE 1, SURAT (RESPONDENT) REVENUE BY: SMT. SONIA KUMAR, SR.D.R. ASSESSEE BY: SHRI MEHUL R. SHAH, A.R. DATE OF HEARING : 23-04-2015 DATE OF PRONOUNCEMENT : 30-04-2015 / ORDER PER : SHAILENDRA KR. YADAV, JUDICIAL MEMBER:- BOTH THESE APPEALS HAVE BEEN FILED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDER FOR A.Y. 2005-06 AND 2 006-07 AGAINST PENALTY ORDERS U/S. 271(1)(C). SO, THEY HA VE BEEN DISPOSED OF BY A COMMON ORDER FOR THE SAKE OF CONVE NIENCE. ITA NO. 1963-1964/AHD/2011 ASSESSMENT YEAR 2005-06 TO 06-07 I.T.A NO. 1963-1964/AHD/2011 A.Y. 2005-06 & 2006-07 PAGE NO MAVIN TEXTRURISERS PVT. LTD VS. DCIT 2 2. IN ITA NO. 1963/AHD/2011 FOR A.Y. 2005-06, THE ASSESSEE HAS FILED THE APPEAL ON FOLLOWING GROUND:- 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE AC TION OF ASSESSING OFFICER IN LEVYING A PENALTY OF RS. 14,83,964/- U/S. 271(1)(C) OF THE ACT. 3. AT THE OUTSET OF HEARING, LD. AR POINTED OUT THA T IN QUANTUM PROCEEDINGS ISSUE HAS BEEN DECIDED IN FAVOU R OF ASSESSEE IN ITA NO. 2296/AHD/2008 FOR A.Y. 2005-06 BY OBSERVING AS UNDER:- 5 AT THE TIME OF HEARING, BOTH SIDES CONCEDED THAT THE CONTROVERSY INVOLVED IN THIS APPEAL IS SQUARELY COV ERED IN FAVOUR OF ASSESSEE BY THE DECISION OF ITAT, C BENCH, AHMEDABAD IN ITA NO. 1044/AHD/2007 FOR THE ASSESSMENT YEAR 2004-05 IN ASSESSEE'S OWN CASE. IT IS PERTINENT TO NOTE THAT IN THE ASSESSMENT YEAR 2004- 05, ITAT, B BENCH, AHMEDABAD FALLOWING THE DECISION D ATED 10.11.2009 IN THE CASE OF NANGALM SYNTHETICS PVT. L TD, IN ITA NO. 2213/AHD/2008 DIRECTED THE ASSESSING OFFICE R TO ALLOW DEPRECIATION @ 50%. WE, THEREFORE, FOLLOWI NG THE DECISION OF ITAT C BENCH, AHMEDABAD IN ITA NO. 1044/AHD/2007 FOR THE ASSESSMENT YEAR 2004-05 IN AASESSEE'S OWN CASE (SUPRA) DIRECT THE ASSESSING OF FICER TO ALLOW DEPRECIATION @ 50%. RESULTANTLY, THE APPEA L OF THE ASSESSEE IS ALLOWED. WHICH HAS NOT BEEN DISPUTED BY LD. DR. THUS, POSIT ION EMERGED THAT QUANTUM ADDITION WHICH IS THE BASIS FO R PENALTY IN QUESTION HAS BEEN DECIDED IN FAVOUR OF ASSESSEE. SO, PENALTY IN QUESTION DOES NOT SURVIVE. ACCORDINGLY, THE SAME IS I.T.A NO. 1963-1964/AHD/2011 A.Y. 2005-06 & 2006-07 PAGE NO MAVIN TEXTRURISERS PVT. LTD VS. DCIT 3 DIRECTED TO BE DELETED. AS A RESULT, THE APPEAL FI LED BY THE ASSESSEE IS ALLOWED. 4. SIMILAR ISSUE AROSE IN A.Y. 2006-07 AND AGAIN IT WAS POINTED OUT THAT ISSUE IN QUANTUM PROCEEDINGS IN IT A NO. 1453/AHD/2009 FOR A.Y. 2006-07 HAS BEEN DECIDED IN FAVOUR OF ASSESSEE WHICH IS THE BASIS OF PENALTY IN QUESTI ON. SO, PENALTY IN QUESTION DOES NOT SURVIVE BECAUSE BASIS OF THE SAME HAS GONE. ACCORDINGLY, THIS APPEAL OF THE ASSESSEE IS ALSO ALLOWED. 5. IN RESULT, BOTH THE APPEALS FILED BY THE ASSESSE E ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE I.E. 30-04-2015 SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KR. YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 30/04/2015 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / I.T.A NO. 1963-1964/AHD/2011 A.Y. 2005-06 & 2006-07 PAGE NO MAVIN TEXTRURISERS PVT. LTD VS. DCIT 4 ,