The DCITA'bad Circle-1, Ahmedabad V. Arvind Fashion Ltd., Ahmedabad

ITA 2133/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9527 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-01-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 29-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: P M MEHTA
• Keywords: Depreciation
• Section: 143(3); 115JB; 54; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER & SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA. NO: 2133/AHD/2011 (ASSESSMENT YEAR: 2001-02) THE DCIT, CIRCLE-1, AHMEDABAD V/S M/S. ARVIND FASHIONS LTD. (NOW MERGED WITH ARVIND LTD.) ARVIND MILLS PREMISES, NARODA ROAD, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AABCA 2402L APPELLANT BY : SHRI DINESH SINGH, SR. D.R . RESPONDENT BY : SHRI P.M. MEHTA, A.R. ( )/ ORDER DATE OF HEARING : 08 -01-201 6 DATE OF PRONOUNCEMENT : 12 -02-2016 PER ANIL CHATURVEDI, ACCOUNTANT MEMBER: 1. THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-VI, AHMEDABAD DATED 16.06.2011 FOR A.Y. 2001-02. ITA NO 2133 /AHD/2011 . A.Y. 2001-02 2 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER. 3. ASSESSEE IS A COMPANY STATED TO BE ENGAGED IN THE B USINESS OF MANUFACTURING AND SALE OF READY-MADE GARMENTS. ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 2001-02 ON 29-10-2001 DECLARING TOTAL INCOME A T RS. 2,88,22,060/-. THE ASSESSMENT WAS FINALIZED U/S. 143(3) ON 30.03.2 004 AND THE TOTAL INCOME WAS DETERMINED AT RS. 3,89,12,566/-. AGGRIEVED BY T HE ORDER OF A.O., ASSESSEE CARRIED THE MATTER BEFORE LD. CIT(A) WHO V IDE ORDER DATED 07.01.2005 GRANTED PARTIAL RELIEF TO THE ASSESSEE. THEREAFTER ASSESSEE AS WELL AS REVENUE PREFERRED APPEAL BEFORE HONBLE ITAT. HO NBLE ITAT VIDE ORDER DATED 18.12.2009 IN ITA NO. 1037 & 1304/AHD/2005 SE T ASIDE THE VARIOUS ISSUE TO THE FILE OF A.O. THEREAFTER PURSUANT TO TH E DIRECTIONS OF HONBLE ITAT, ASSESSMENT WAS FRAMED U/S. 143(3) R.W.S. 254 VIDE ORDER DATED 31.12.2010 AND THE TOTAL INCOME WAS DETERMINED AT R S. 3,64,34,922/- AND TAX LIABILITY U/S. 115JB WAS DETERMINED AT RS. 40,45,91 9/-. AGGRIEVED BY THE ORDER OF A.O., ASSESSEE CARRIED THE MATTER BEFORE L D. CIT(A) WHO VIDE ORDER DATED 16.06.2011 GRANTED PARTIAL RELIEF TO THE ASSE SSEE. AGGRIEVED BY THE AFORESAID ORDER OF LD. CIT(A), REVENUE IS NOW IN A PPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUND:- 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETIN G THE ADDITION OF RS. 30,64,062/- MADE ON ACCOUNT OF EXCESS DEPRECIATION. 4. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THAT A .O WHILE PASSING THE ORDER DATED 31.12.2010 PASSED U/S. 143(3) R.W.S. 254 HAD MADE ADDITION OF EXCESS DEPRECIATION THAT WAS DISALLOWED VIDE ORDER DATED 2 0.11.2006 PASSED U/S. 154 OF THE ACT AGAINST WHICH ASSESSEE PREFERRED APP EAL BEFORE LD. CIT(A). IN APPEAL LD. CIT(A) VIDE ORDER DATED 16.06.2011 DIREC TED THE A.O TO VERIFY THE ITA NO 2133 /AHD/2011 . A.Y. 2001-02 3 ASSESSEES CLAIM AND TAKE CORRECT INCOME AFTER CONS IDERING THE ORDERS OF APPELLATE AUTHORITIES. HE FURTHER SUBMITTED THAT LD . CIT(A) VIDE ORDER DATED 27.04.2007 THAT WAS PASSED AGAINST THE ORDER U/S. 1 54 HAD DELETED THE ADDITION MADE BY THE A.O AGAINST WHICH DEPARTMENT HAD FILED APPEAL BEFORE HONBLE TRIBUNAL. HONBLE TRIBUNAL IN ITA NO. 2916/ AHD/2007 & C.O. NO. 210/AHD/2007 ORDER DATED 07.05.2010 DISMISSED THE D EPARTMENTS APPEAL AND THEREBY CONFIRMED THE ACTION OF LD. CIT(A) WHER EBY HE HAD DIRECTED THE DELETION OF THE ADDITION. HE POINTED TO THE RELEVAN T ORDER OF TRIBUNAL PLACED AT PAGE 7 TO 12 OF THE PAPER BOOK. THE LD. A.R. THE REFORE SUBMITTED THAT SINCE THE ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSE E, THE APPEAL OF DEPARTMENT DESERVES TO BE DISMISSED. THE LD. D.R. O N THE OTHER HAND SUPPORTED THE ORDER OF A.O. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT ADDITION OF RS. 30,64,062/- ON ACCOUNT OF EXCESS DEPRECIATION WAS MADE BY THE A.O IN THE ORDER PASSED U/S. 154 OF THE ACT. THE LD. CIT(A) VIDE ORDER DATED 27.04.2007 HELD THAT ONLY A MISTAKE WHI CH IS APPARENT FROM RECORD COULD BE RECTIFIED U/S. 154 OF THE ACT AND FURTHER HELD THAT THE ISSUE OF DEPRECIATION WAS DEBATABLE BOTH LEGALLY AS WELL AS FACTUALLY AND THEREFORE ACTION U/S. 154 OF THE ACT WAS NOT PERMISSIBLE IN T HE EYES OF LAW AND ACCORDINGLY THE ADDITION MADE BY THE A.O IN ORDER A GAINST PASSED U/S. 154 WAS DELETED. AGAINST THE ORDER OF LD. CIT(A), THE M ATTER WAS CARRIED BY REVENUE BEFORE TRIBUNAL. TRIBUNAL WHILE DECIDING TH E APPEAL IN ITA NO. 2916/AHD/2007 ORDER 07.05.2010 UPHELD THE ORDER OF LD. CIT(A) AND DISMISSED THE APPEAL OF REVENUE. ITA NO 2133 /AHD/2011 . A.Y. 2001-02 4 6. IN VIEW OF THE AFORESAID FACTS, WE ARE OF THE VIEW THAT SINCE THE ISSUE HAD ATTAINED FINALITY, THERE IS NO MERIT IN THE GROUNDS OF REVENUE. THUS THE GROUNDS OF REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 12 - 02 - 201 6. SD/- SD/- (S. K. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD