Paramount Communications Ltd., New Delhi V. DCIT, New Delhi

ITA 1998/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6327 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 05-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRINALINI SAPRA
• Assessee Lawyers: SATYAM SETHI
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. PAWAN SINGH, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.1998/DEL/2017 ASSESSMENT YEAR: 2011-12 PARAMOUNT COMMUNICATIONS LTD., C-125, PARAMOUNT HOUSE, NARAINA INDUSTRIAL AREA, PHASE-I, NEW DELHI-110028 PAN NO.AAACP0969Q VS DY. COMMISSIONER OF INCOME TAX, CIRCLE 19 (2) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. SATYAM SETHI, ADVOCATE RESPONDENT BY MS. MRINALINI SAPRA, SR. DR DATE OF HEARING: 17/08/2021 DATE OF PRONOUNCEMENT: 17/08/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL FILED BY THE ASSESSEE IS PREFERRED AGA INST THE ORDER OF THE CIT(A)-7, NEW DELHI DATED 14.02.2017 F OR A.Y. 2011-12. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT T HE CIT(A) ERRED IN UPHOLDING THE DISALLOWANCE OF DEPRECIATION OF RS .54,29,216/- 2 RELATABLE EXCHANGE FLUCTUATIONS IN RESPECT OF ASSET S ACQUIRED IN INDIA FROM THE FUNDS RAISED THROUGH FOREIGN CURRENC Y CONVERTIBLE BONDS FOLLOWING ITS OWN ORDER OF EARLIER ASSESSMENT YEARS. 3. THE ASSESSMENT PROCEEDINGS CAN BE SUMMARIZED BY THE FOLLOWING OBSERVATIONS MADE BY THE AO IN THE ASSESS MENT ORDER:- DISALLOWANCE OF EXCESSIVE DEPRECATION CLAIMED DURI NG CURRENT ASSESSMENT YEAR DUE TO EFFECT OF DISALLOWANCE OF PR ORATE EXCHANGE FLUCTUATION LOSS PERTAINING TO INDIGENOUS / DOMESTI C FIXED ASSETS MADE BY CIT(A) FOR A.Y.2009-10 AND ASSESSING OFFICE R FOR A.Y.2010- 11. 4. THE CIT(A) CONFIRMED THE FINDINGS OF THE AO BY O BSERVING AS UNDER :- 4.3 SINCE THE FACTS ARE SIMILAR, BEING IN AGREEMEN T WITH THE REASONING GIVEN IN THE APPELLATE ORDER FOR AY 2009- 10, WHICH WAS FOLLOWED BY ME IN DECIDING APPEAL FOR A.Y.2010-11, THE ENHANCED DEPRECIATION IS NOT ALLOWABLE. THE ADDITION OF RS. 54,29,216/- IS CONFIRMED. THIS GROUND OF APPEAL IS RULED AGAINST T HE APPELLANT. 5. IT CAN BE SEEN THAT BOTH THE LOWER AUTHORITIES H AVE FOLLOWED THE ORDERS OF THE EARLIER ASSESSMENT YEARS A.Y.2009 -10 AND 2010-11. 3 6. WE FIND THAT THE IMPUGNED ISSUE HAS BEEN DECIDED BY THIS TRIBUNAL IN ASSESSEES OWN CASE IN A.Y.2009-10 AND 2010-11 I N ITA NO.767/DEL/2014 AND 1378/DEL/2017. THE RELEVAN T FINDINGS OF THIS TRIBUNAL READ AS UNDER:- 4 5 6 7 8 7. AS NO DISTINGUISHING DECISION HAS BEEN BROUGHT T O OUR NOTICE BY THE DR, RESPECTFULLY FOLLOWING THE FINDINGS OF T HIS TRIBUNAL (SUPRA) WE DIRECT THE AO TO DELETE THE ADDITION OF RS.54,29,216/-. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 9. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRES ENCE OF BOTH THE REPRESENTATIVES ON 17.08.2021. SD/- SD/- (PAWAN SINGH) (N. K. BIL LAIYA) JUDICIAL MEMBER A CCOUNTANT MEMBER *NEHA* DATE:-17.08.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 9 DATE OF DICTATION 1 7 .08.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 1 7 .08.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 1 7 .08.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 1 7 .08.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 1 7 .08.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 1 7 .08.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 7 .08.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 7 .08.2021 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 10