ACIT Corporate Circle 6(2), CHENNAI V. Sundaram Auto Components Pvt. Ltd., CHENNAI

ITA 2094/CHNY/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8976 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 05-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M S NETHRAPALJCITD R
• Keywords: Depreciation; Additional depreciation; Earning of tax free income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER I.T.A.NOS.2093 & 2094/CHNY/2018 AND CROSS OBJECTIONS NOS.130 & 129/CHNY/2018 ASSESSMENT YEARS : 2013-14 & 2014-15 ACIT, CORPORATE CIRCLE-6(2), CHENNAI. VS. M/S.SUNDARAM AUTO COMPONENTS PVT LTD., JAYALAKSHMI ESTATES, HADDOWS ROAD, CHENNAI 600 034. [PAN AAACS 7027 G ] ( / APPELLANT) ( /RESPONDENT / CROSS OBJECTOR) / APPELLANT BY : MR.M.S.NETHRAPAL,JCIT,D.R /RESPONDENT BY : MR.SAROJ KUMAR PARIDA,ADVOCATE ! / DATE OF HEARING : 11 - 12 - 201 8 '#$% ! / DATE OF PRONOUNCEMENT : 11 - 12 - 201 8 !' / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER I.T.A.NO.2093/CHNY/2018 IS AN APPEAL FILED BY THE REVENUE, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-15, CHENNAI IN ITA NO.192/2016-17/CIT(A)-15 DATED 28. 03.2018 FOR THE ASSESSMENT YEAR 2013-14, & CORRESPONDINGLY, THE ASS ESSEE FILED CROSS ITA NOS.2093 & 2094/CHNY/2018 C.O NOS.130 & 129/CHNY/2018 :- 2 -: OBJECTIONS NO.130/CHNY/2018 AND I.T.A.NO.2094/CHNY/2018 IS AN APPEAL FILED BY THE REVENUE, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-15, CHENNAI IN ITA NO.275/201 6-17/CIT(A)-15 DATED 26.03.2018 FOR THE ASSESSMENT YEAR 2014-15, & CORRESPONDINGLY, THE ASSESSEE FILED CROSS OBJECTION S NO.129/CHNY/2018. SINCE THE ISSUES IN BOTH THE APPEALS ARE IDENTICAL, THESE APPEALS ARE DISPOSED OFF THROUGH A COMMON ORD ER. 2. MR.M.S.NETHRAPAL REPRESENTED ON BEHALF OF THE REVENUE AND MR.SAROJ KUMAR PARIDA REPRESENTED ON BEHALF OF THE ASSESSEE. 3. IT WAS SUBMITTED BY LD.D.R THAT GROUND NOS.2 T O 2.8 IN BOTH THE APPEALS OF THE REVENUE WAS AGAINST THE ACTION O F LD.CIT(A) IN RESTRICTING THE DISALLOWANCE U/S.14A TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE. THE LD.D.R VEHEMENTLY OPPO SED THE ORDER OF LD.CIT(A). 4. IN REPLY, IT WAS SUBMITTED BY LD.A.R THAT THE ISSUE WAS NOW SQUARELY COVERED BY THE DECISION OF SPECIAL BENCH O F DELHI TRIBUNAL IN THE CASE OF ACIT VS. VIREET INVESTMENTS PRIVATE LTD ., IN ITA NO.502/DEL./2012 WHEREIN THE DECISION OF HONBLE DE LHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS PVT. LTD. VS.CIT REPO RTED IN (2015) 372 ITR 0694(DELHI) HAS BEEN FOLLOWED. ITA NOS.2093 & 2094/CHNY/2018 C.O NOS.130 & 129/CHNY/2018 :- 3 -: 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE LD.CIT(A) HAS FOLLOWED THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS PVT. LTD. VS .CIT REFERRED TO SUPRA AND AS REVENUE HAS NOT BEEN ABLE TO PLACE ANY OTHER DECISION ON THE ISSUE IN FAVOUR OF REVENUE, RESPECTFULLY FOL LOWING THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOIN T INVESTMENTS PVT. LTD. VS.CIT REFERRED TO SUPRA, THE FINDING OF THE L D.CIT(A) ON THIS ISSUE STANDS CONFIRMED. 6. IN REGARD TO GROUND NOS.3 TO 3.2, IT WAS SUBMIT TED BY LD.D.R THAT THE ISSUE WAS AGAINST THE ACTION OF LD.CIT(A) IN ALLOWING THE ASSESSEES CLAIM OF ADDITIONAL DEPRECIATION. LD.D.R VEHEMENTLY SUPPORTED THE ORDERS OF THE LD. ASSESSING OFFICER A ND THE LD.CIT(A). 7. IN REPLY, IT WAS SUBMITTED BY LD.A.R THAT THE I SSUE WAS NOW SQUARELY COVERED BY THE DECISION OF CO-ORDINATE BEN CH OF THIS TRIBUNAL IN THE CASE OF DCIT VS. SUNDARAM AUTO COMPONENTS PR IVATE LTD., IN ITA NO.1300/MDS/2016 WHEREIN FOR ASSESSMENT YEAR 20 11-12 WHEREIN FOLLOWING THE DECISION OF HONBLE KARNATAKA HIGH CO URT IN RITTAL INDIA PVT. LTD. REPORTED IN (2016) 380 ITR 424, THE ISSUE HAS BEEN HELD IN FAVOUR OF THE ASSESSEE. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS I T IS NOTICED THAT THE ISSUE IS NOW SQUARELY COVERED BY THE DECIS ION OF CO-ORDINATE ITA NOS.2093 & 2094/CHNY/2018 C.O NOS.130 & 129/CHNY/2018 :- 4 -: BENCH OF THIS TRIBUNAL IN THE CASE OF DCIT VS. SUN DARAM AUTO COMPONENTS PRIVATE LTD., VIDE ORDER DATED 25.11.201 6 REFERRED TO SUPRA, THE FINDING OF THE LD.CIT(A) ON THIS ISSUE S TANDS CONFIRMED. 9. AT THE TIME OF HEARING, THE LD.A.R DID NOT WISH TO PRESS BOTH THE CROSS OBJECTIONS FILED BY THE ASSESSEE AND CONS EQUENTLY, THE TWO CROSS OBJECTIONS FILED BY THE ASSESSEE STAND DISMIS SED AS NOT PRESSED. 10. IN THE RESULT, BOTH THE APPEALS OF THE REVENU E ARE DISMISSED AND BOTH THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED AS NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 11 TH DECEMBER, 2018, AT CHENNAI. SD/ - SD/ - ( ) (S. JAYARAMAN) # !$ /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) % !$ / JUDICIAL MEMBER & / CHENNAI ' / DATED: NOVEMBER, 2018. K S SUNDARAM ( ) *+ , +$ / COPY TO: 1 . / APPELLANT 3. ( ( - () / CIT(A) 5. +01 23 / DR 2. / RESPONDENT 4. ( ( - / CIT 6. 145 6 / GF