The DCIT, Circle-1(1)(1), Ahmedabad V. M/s. Agencies & Cargo Care Ltd., Ahmedabad

ITA 2041/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8266 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 09-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Additional evidence

Judgement Text

ITA NO. 2041/AHD/2015 DCIT VS. AGENCIES & CARGO CARE LTD ASSESSMENT YEAR: 2007-08 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] ITA NO.2041/AHD/2015 ASSESSMENT YEAR: 2007-08 DCIT ..................APPELLANT CIRCLE 1(1)(1), AHMEDABAD VS. M/S AGENCIES & CARGO CARE LTD ............................RESPONDENT 9-B, SUMATINAGAR SOCIETY, USMANPURA, AHMEDABAD-380013 [PAN : AAECA 7686 B] APPEARANCES BY: MUDIT NAGPAL FOR THE APPELLANT NONE FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 26.10.2017 DATE OF PRONOUNCING THE ORDER : 26.10.2017 O R D E R PER PRAMOD KUMAR AM: 1. BY WAY OF THIS APPEAL, THE APPELLANT ASSESSING O FFICER HAS RAISED FOLLOWING GRIEVANCE AGAINST THE ORDER OF CIT(A)-1, AHMEDABAD DATED 06.04.2015 FOR THE ASSESSMENT YEAR 2007-08. THE CIT(A) HAS ERRED IN LAW AND ON FACT IN DELETIN G THE DISALLOWANCE OF RS.39,20,571/- CONSIDERING STORAGE TANKS AS PLANT A ND MACHINERY AND NOT BUILDING. 2. WE HAVE HEARD LEARNED DEPARTMENTAL REPRESENTATIVE. NONE APPEARED FOR THE ASSESSEE. WE HAVE PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 3. WE FIND THAT THERE IS NO DISPUTE THAT THE ISSUE IS SQUARELY COVERED BY TRIBUNALS ORDERS IN ASSESSEES OWN CASE FOR ASSESS MENT YEARS 2006-07 AND 2008- 09. IT WAS SO SPECIFICALLY NOTED IN THE ORDER OF C IT(A) AND LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT BEEN ABLE TO BRING ANY MATER IAL ON RECORD TO CONTROVERT THIS POSITION. WE MAY, IN THIS REGARD, REFER TO THE FOL LOWING OBSERVATIONS MADE BY THE LEARNED CIT(A) IN THE IMPUGNED ORDER:- 5. I HAVE PERUSED THE FACT AS EXPLAINED BY APPELLA NT IN ITS SUBMISSION AS GATHERED FROM THE ORDER OF HON'BLE ITAT. I HAVE PER USED CASE LAWS RELIED ON BY APPELLANT INCLUDING ORDERS OF HON'BLE ITAT RAJKO T AS WELL AS AHMEDABAD IN THE CASE OF APPELLANT FOR A.Y. 06-07 AND A.Y. 08-09 . AFTER CONSIDERING THE ITA NO. 2041/AHD/2015 DCIT VS. AGENCIES & CARGO CARE LTD ASSESSMENT YEAR: 2007-08 PAGE 2 OF 2 FACTS AND LEGAL SUBMISSION, I AM INCLINED WITH THE APPELLANT THAT STORAGE TANKS ARE INTEGRAL PART OF COMPOSITE BUSINESS (APPELLANT' S BUSINESS IS OF TERMINALING OF LIQUID CARGOS AND TRANSPORTATION) OF APPELLANT C OMPRISES OF PIPE LINES. MOTORS, VALVES, CONTROL PANEL, ETC. AND AS PER ESTA BLISH LEGAL PREPOSITION IF SUCH STORAGE TANKS ARE INTEGRAL PART OF THE WHOLE P ROCESS OF APPELLANT'S BUSINESS AND WITHOUT SUCH STORAGE TANKS THE APPELLA NT'S BUSINESS CANNOT BE CONDUCTED INDEPENDENTLY THEN SUCH STORAGE TANKS HAS TO BE TREATED AS PLANTED AS MACHINERY. HON'BLE ITAT AHMEDABAD 'C' BE NCH IN THE CASE OF APPELLANT FOR A.Y. 08-09 IN ITA NO. 384/AHD/2013 VI DE ORDER DT. 05/07/2013 HELD THAT SUCH STORAGE TANKS ARE ENTITLED FOR DEPRE CIATION @ 15% BEING PLANT AND MACHINERY. THIS BEING SUBSEQUENT ASSESSMENT YEA R THEN THE IMPUGNED PREVIOUS YEAR UNDER APPEAL, IT IS THEREFORE, IT CAN BE CONCLUDED THAT APPELLANT CASE IS DULY COVERED BY SUCH ORDER OF HON'BLE ITAT. AS FAR AS QUESTION OF ADDITIONAL EVIDENCES IN THE FORM OF PHOTOGRAPH AND APPEAL ORDERS OF EARLIER YEARS ARE CONCERNED, THE APPELLANT CONTENDED THAT T HE SAME WERE SUBMITTED BEFORE A.O. VIDE ITS SUBMISSION DT. 22/02/13 IN RES PONSE TO A.O'S NOTICE DT. 06/02/2013. THE ISSUE OF ADMISSION OF SUCH EVIDENCE S ARE NOW ACADEMIC IN VIEW OF A.O.S VERIFICATION OF FACTS IN SUBSEQUENT ASSESSMENT YEAR 08-09 AND HON'BLE ITAT ORDER DT. 05/07/2013 FOR THIS YEAR ALL OWING SUCH DEPRECIATION. IT IS THEREFORE, FOLLOWING THE RATIO OF HONBLE ITAT T HE A.O. IS DIRECTED TO ALLOW THE DEPRECIATION ON STORAGE TANKS @ 15% AND DELETE THE ADDITION SO MADE OF RS.39,20,571/-. THE APPELLANT GETS RELIEF ACCORDIN GLY. 4. AS THERE IS NOTHING TO CONTROVERT THE ABOVE FIND INGS OF THE LD. CIT(A) OR TO EVEN CHALLENGE THE MATTER BEING SQUARELY COVERED BY TRIB UNALS DECISION IN ASSESSEES OWN CASE FOR AYS 2006-07 AND 2008-09, WE SEE NO REA SON TO INTERFERE IN THE ORDER OF THE LD. CIT(A). WE, THEREFORE, CONFIRM THE SAME AN D DECLINE TO INTERFERE IN THE MATTER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOUN CED IN THE OPEN COURT TODAY ON THE 26 TH DAY OF OCTOBER, 2017. SD/- SD/- RAJPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 26 TH DAY OF OCTOBER, 2017 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD